Gamlingay leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Gamlingay will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Gamlingay with in excess of 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Gamlingay,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gamlingay valuers.
Connor was the the leasehold proprietor of a conversion apartment in Gamlingay being sold with a lease of just over 59 years left. Connor informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Dr C Flores moved into a basement flat in Gamlingay in January 2000. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparable homes in Gamlingay with an extended lease were valued about £264,000. The average ground rent payable was £60 invoiced annually. The lease ended in 2079. Considering the 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.
In 2009 we were contacted by Mr Benjamin Allen who, having was assigned a lease of a ground floor apartment in Gamlingay in January 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative flats in Gamlingay with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 invoiced yearly. The lease finished on 12 July 2090. Considering the 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus expenses.