Unfortunately that a Gamlingay residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Gamlingay property market.Where your lease has approximately ninety years left, you should start thinking about 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 under 80 years - otherwise a higher amount will be due. Most flat owners in Gamlingay will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Gamlingay 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.
Last year Owen, came dangerously near to the eighty-year threshold with the lease on his garden apartment in Gamlingay. In buying his flat two decades ago, the length of the lease was of minimal significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Owen extended the lease just under the wire in August. Owen and the landlord in the end agreed on a premium of £5,000 . If the lease had dipped below eighty years, the amount would have escalated by at least £1,050.
In 2011 we were called by Mr Omar Johnson who, having took over the lease of a recently refurbished apartment in Gamlingay in February 2006. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Gamlingay with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish on 17 April 2094. Taking into account 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Last Winter we were e-mailed by Dr Daniel Girard , who moved into a one bedroom flat in Gamlingay in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Gamlingay with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 18 March 2105. Having 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.