Gamston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Gamston tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Gamston you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Gamston with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Gamston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gamston valuers.
Oscar owned a 2 bedroom apartment in Gamston on the market with a lease of a little over 61 years unexpired. Oscar on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last month we were e-mailed by Mr and Mrs. I Green , who completed a garden apartment in Gamston in September 2008. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Gamston with an extended lease were in the region of £189,000. The average amount of ground rent was £55 collected quarterly. The lease expired on 25 October 2078. Taking into account 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Last month we were contacted by Dr L Martin , who acquired a studio flat in Gamston in July 2006. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical properties in Gamston with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease termination date was in 2098. Considering the 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.