Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Gants Hill. Clearly, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Gants Hill have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Gants Hill lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Gants Hill with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Gants Hill leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Evan, came very near to the 80-year threshold with the lease on his one bedroom flat in Gants Hill. In buying his flat 19 years ago, the length of the lease was of little bearing. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Evan was able to extend his lease just in the nick of time last September. Evan and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have become more costly by a minimum £975.
Ms I Martínez bought a one bedroom apartment in Gants Hill in September 2012. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Gants Hill with a long lease were in the region of £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2084. Given that there were 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including professional charges.
An example of a Freehold Enfranchisement case for a Gants Hill property is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The unexpired term as at the valuation date was 65 and 61.