Unfortunately that a Gainsborough residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Gainsborough property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Gainsborough will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Gainsborough with over one hundred 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 landlord in Gainsborough,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 Gainsborough valuers.
In recent months Jackson, came critically near to the eighty-year mark with the lease on his ground floor apartment in Gainsborough. Having bought his flat 19 years previously, the lease term was of no bearing. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Jackson extended the lease just in the nick of time last September. Jackson and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £975.
Last Spring we were contacted by Mrs Robyn Sánchez , who took over the lease of a one bedroom apartment in Gainsborough in September 2011. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Gainsborough with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed in 2099. Considering the 74 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last Autumn we were called by Mr and Mrs. F Carter , who bought a newly refurbished apartment in Gainsborough in March 1997. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Gainsborough with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 billed yearly. The lease lapsed in 2088. Having 63 years remaining we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.