On the balance of probabilities if you own a flat in Gainsborough you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Gainsborough 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 conveyancing solicitor we work with provide it.
Subsequent to protracted negotiations with the landlord of her ground floor flat in Gainsborough, Daisy started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension completed in August 2006. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. F Ali acquired a garden flat in Gainsborough in March 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical properties in Gainsborough with an extended lease were worth £235,600. The average ground rent payable was £60 billed yearly. The lease ended in 2087. Considering the 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Mr and Mrs. D Sánchez was assigned a lease of a newly refurbished apartment in Gainsborough in April 1999. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable homes in Gainsborough with an extended lease were worth £174,200. The average ground rent payable was £55 collected monthly. The lease elapsed on 2 March 2076. Taking into account 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.