Gainsborough leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Gainsborough will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Zachary owned a 2 bedroom flat in Gainsborough being marketed with a lease of a few days over sixty years left. Zachary informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Dr Erin Carter owned a studio flat in Gainsborough in September 2007. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Gainsborough with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated in 2093. Taking into account 67 years left we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
Last Spring we were e-mailed by Mrs Sophie Allen , who bought a ground floor apartment in Gainsborough in February 2011. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Gainsborough with 100 year plus lease were worth £201,200. The average amount of ground rent was £55 collected per annum. The lease ended on 20 November 2082. Having 56 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.