With a residential leasehold premises in Garston, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Residents in Garston with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Garston with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Garston leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of lengthy negotiations with the freeholder of her first floor flat in Garston, Amber started the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in August 2011. The landlord’s costs were kept to an absolute minimum.
Mr Leon Adams owned a purpose-built flat in Garston in January 2011. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative residencies in Garston with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected monthly. The lease ended in 2092. Having 67 years remaining we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.
Last Autumn we were contacted by Dr K Howard , who acquired a ground floor apartment in Garston in June 2010. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Garston with 100 year plus lease were in the region of £206,200. The average ground rent payable was £60 billed monthly. The lease concluded on 26 April 2081. Having 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of fees.