When it comes to long leasehold premises in Garston, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Anyone in Garston with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Garston with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Garston leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Daniel, came dangerously close to the eighty-year mark with the lease on his first floor apartment in Garston. In buying his home 18 years ago, the length of the lease was of minimal concern. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Daniel arranged for a lease extension just under the wire in March. Daniel and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had dipped lower than 80 years, the figure would have gone up by at least £925.
In 2011 we were called by Ms Charlotte Johnson who, having owned a one bedroom apartment in Garston in February 1998. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Garston with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease end date was in 2103. Having 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last Autumn we were e-mailed by Mr Daniel Roberts , who bought a first floor flat in Garston in July 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Garston with a long lease were valued about £265,200. The average amount of ground rent was £65 collected monthly. The lease came to a finish on 11 August 2092. Considering the 66 years left we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus legals.