As the length of the unexpired term of a Gainsborough domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Gainsborough will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Gainsborough with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you better control over the value of your Gainsborough leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jude, came very close to the eighty-year mark with the lease on his first floor apartment in Gainsborough. Having purchased his home two decades ago, the unexpired term was of minimal importance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Jude arranged for a lease extension at the eleventh hour in July. Jude and the freeholder in the end agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,025.
Mr and Mrs. R Nelson owned a one bedroom flat in Gainsborough in October 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable homes in Gainsborough with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected monthly. The lease expired on 13 June 2081. Considering the 55 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus fees.
Last month we were called by Dr I López , who moved into a studio flat in Gainsborough in September 1995. The question was if we could estimate the premium would be for a ninety year lease extension. Similar homes in Gainsborough with an extended lease were worth £295,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded in 2101. Given that there were 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.