On the balance of probabilities if you own a flat in Gamlingay you actually own a long leasehold interest over your property
Leasehold residencies in Gamlingay with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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 conveyancer we work with provide it.
Finn owned a conversion flat in Gamlingay on the market with a lease of just over sixty years unexpired. Finn on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were e-mailed by Mr Leo Sánchez , who purchased a one bedroom flat in Gamlingay in March 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar premises in Gamlingay with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 12 May 2082. Taking into account 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
Last year we were called by Dr Tyler Watson , who completed a studio apartment in Gamlingay in April 2003. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Gamlingay with an extended lease were worth £245,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 20 August 2093. Taking into account 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.