With a residential leasehold property in Goole, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Residents in Goole with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has below eighty years left, under the relevant Act the landlord can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Goole,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Goole valuers.
Following lengthy negotiations with the freeholder of her first floor apartment in Goole, Charlotte commenced the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in August 2014. The landlord’s fees were kept to an absolute minimum.
In 2011 we were called by Dr A Stewart who, having purchased a newly refurbished flat in Goole in January 2008. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Goole with an extended lease were valued around £264,000. The mid-range ground rent payable was £60 collected yearly. The lease lapsed on 28 March 2079. Given that there were 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.
Mr and Mrs. L Richardson bought a recently refurbished flat in Goole in April 2004. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Goole with an extended lease were worth £225,400. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 11 March 2090. Given that there were 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus expenses.