As the length of the unexpired term of a Garstang residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Garstang will qualify for this right; however a lawyer should be able to confirm whether you are eligible to extend your lease. In certain 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 Garstang with more than one hundred years outstanding on the lease are often 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 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with handle Garstang 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.
Trailing lengthy discussions with the landlord of her purpose-built flat in Garstang, Melissa started the lease extension process as the 80 year mark was fast nearing. The legal work completed in May 2006. The landlord’s fees were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. H Roux who, having bought a one bedroom flat in Garstang in January 2006. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable homes in Garstang with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired on 3 September 2091. Given that there were 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
In 2014 we were approached by Mrs E Rogers who, having owned a garden apartment in Garstang in March 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable flats in Garstang with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease termination date was on 23 January 2080. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including expenses.