Godmanchester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Godmanchester tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Godmanchester you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Godmanchester with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Godmanchester can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Godmanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her ground floor apartment in Godmanchester, Isabelle started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The lease extension completed in February 2012. The landlord’s costs were restricted to below 700 GBP.
Mr and Mrs. O Moore owned a basement flat in Godmanchester in January 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Godmanchester with an extended lease were valued about £280,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed in 2096. Considering the 70 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
In 2013 we were phoned by Mr Y Ricardo who, having purchased a purpose-built flat in Godmanchester in May 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Godmanchester with a long lease were valued around £223,400. The average amount of ground rent was £60 collected quarterly. The lease finished on 16 November 2085. Considering the 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of fees.