Gainsborough leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Gainsborough will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Gainsborough with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her one bedroom apartment in Gainsborough, Kirsty commenced the lease extension process as the eighty year mark was rapidly approaching. The lease extension was finalised in July 2015. The freeholder’s charges were negotiated to about 650 pounds.
Dr V Bennett owned a first floor apartment in Gainsborough in June 2008. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable flats in Gainsborough with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease termination date was on 11 June 2079. Given that there were 53 years left we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
Last Spring we were phoned by Mr Y Morel , who completed a first floor apartment in Gainsborough in August 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar premises in Gainsborough with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced yearly. The lease expiry date was on 5 February 2099. Taking into account 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.