The closer a domestic lease in Gants Hill nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Gants Hill will qualify for this right; however a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Gants Hill with in excess of 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Gants Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jacob, started to get near to the eighty-year mark with the lease on his first floor flat in Gants Hill. Having bought his flat two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Jacob extended the lease at the eleventh hour last June. Jacob and the freeholder via the managing agents in the end settled on sum of £5,000 . If he had missed the deadline, the price would have escalated by at least £850.
In 2011 we were approached by Dr F Brown who, having purchased a first floor flat in Gants Hill in July 2006. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar residencies in Gants Hill with a long lease were in the region of £189,000. The average amount of ground rent was £55 billed annually. The lease ran out on 12 March 2079. Considering the 53 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Gants Hill residence is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The remaining number of years on the lease was 65 and 61.