Main reasons to commence your Gamlingay lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Main reasons to commence your Gamlingay lease extension today:
</h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/gamlingay">Gamlingay</a> property value </h4>
<p> With a domestic leasehold property in Gamlingay, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Gamlingay with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current statute the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due. <h4>Gamlingay property with a lease extension has roughly the same value as a freehold</h4>
<p>
Leasehold premises in Gamlingay with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lending institutions will not issue a mortgage with a short lease</h4> Lending institutions are less likely to issue a mortgage on a residential flat in Gamlingay with a short lease. Many lenders simply refuse to lend on leases with less than 75 years left.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our Gamlingay lease extension solicitors or enfranchisement solicitors
</h4>
<p> Using our service gives you increased control over the value of your Gamlingay leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Gamlingay Lease Extension Case Summaries:
</h4>
<h5> Eliot, Gamlingay, Cambridgeshire</h5>
<p> Last year Eliot, came perilously close to the eighty-year mark with the lease on his ground floor apartment in Gamlingay. Having bought his property 19 years ago, the length of the lease was of little importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Eliot arranged for a lease extension at the eleventh hour in June. Eliot and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had dipped below 80 years, the premium would have increased by at least £1,100.
<h5>Gamlingay case:</h5>
<p> Dr E Parker purchased a ground floor flat in Gamlingay in January 2006. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical residencies in Gamlingay with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2106. Given that there were 80 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
<h5>Gamlingay case:</h5>
<p>
In 2012 we were approached by Mr and Mrs. I Richardson who, having completed a first floor apartment in Gamlingay in March 2011. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparative residencies in Gamlingay with a long lease were valued about £200,800. The mid-range ground rent payable was £65 billed annually. The lease expired in 2086. Having 60 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
</div>