Unfortunately that a Gainsborough residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Gainsborough property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Gainsborough will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Gainsborough can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Gainsborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the freeholder of her basement flat in Gainsborough, Sophie started the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in March 2013. The freeholder’s fees were kept to an absolute minimum.
Last July we were called by Mr and Mrs. G Smith , who acquired a ground floor flat in Gainsborough in September 2010. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar flats in Gainsborough with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated in 2105. Considering the 79 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last September we were called by Mr and Mrs. W Norbert , who purchased a basement apartment in Gainsborough in May 2008. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable properties in Gainsborough with a long lease were worth £275,000. The mid-range ground rent payable was £65 billed annually. The lease ran out on 28 April 2094. Having 68 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.