There is no doubt about it a leasehold property in Godmanchester is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. Most flat owners in Godmanchester will qualify for this right; that being said a conveyancer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Godmanchester with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
The lawyers that we work with handle Godmanchester lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy negotiations with the freeholder of her purpose-built flat in Godmanchester, Lucy commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension was concluded in April 2008. The freeholder’s fees were restricted to approximately 550 GBP.
In 2010 we were approached by Mr and Mrs. M Howard who, having acquired a ground floor apartment in Godmanchester in November 1997. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable flats in Godmanchester with a long lease were valued around £171,800. The average ground rent payable was £55 billed monthly. The lease elapsed on 27 July 2076. Taking into account 50 years unexpired we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including fees.
Mr Isaac Martinez was assigned a lease of a ground floor flat in Godmanchester in January 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Godmanchester with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 17 October 2096. Considering the 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.