The re-sale value of a leasehold property in Gants Hill depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year mark. Current legislation entitles Gants Hill qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Lease extensions in Gants Hill can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Gants Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Daniel, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Gants Hill. In buying his flat two decades ago, the lease term was of little significance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Daniel was able to extend his lease at the eleventh hour last March. Daniel and the freeholder via the management company ultimately settled on the final figure of £6,000 . If the lease had descended to less than 80 years, the amount would have gone up by a minimum £850.
Last year we were contacted by Dr J Lewis , who purchased a basement apartment in Gants Hill in March 2000. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Gants Hill with an extended lease were valued about £243,000. The average ground rent payable was £65 billed quarterly. The lease finished in 2089. Given that there were 63 years left we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 residue of the current lease was 65 and 61.