When it comes to residential leasehold premises in Garstang, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years remaining. Leasehold owners in Garstang with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has fewer than 80 years outstanding, under the current statute the freeholder can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Garstang with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Lease extensions in Garstang can be a difficult process. We recommend you procure 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 Garstang lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the freeholder of her first floor apartment in Garstang, Alisha commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The lease extension completed in November 2005. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. T Phillips , who took over the lease of a ground floor flat in Garstang in February 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar flats in Garstang with 100 year plus lease were in the region of £196,400. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish on 9 November 2079. Given that there were 54 years unexpired we calculated the premium to the freeholder to extend the lease to be within £35,200 and £40,600 plus costs.
Last February we were contacted by Mrs Rhiannon Moore , who was assigned a lease of a one bedroom apartment in Garstang in June 1998. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative flats in Garstang with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 23 March 2099. Taking into account 74 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.