The only way is down when it comes to Gants Hill lease terms. Gants Hill flats that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold premises in Gants Hill with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with procure Gants Hill 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 lawyer we work with provide it.
Following protracted discussions with the freeholder of her studio apartment in Gants Hill, Laura initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work completed in July 2009. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Mrs Catherine Miller who, having completed a one bedroom apartment in Gants Hill in October 2003. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Gants Hill with an extended lease were valued about £206,200. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2081. Given that there were 56 years left we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.
An example of a Freehold Enfranchisement case for a Gants Hill premises 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.