Gatley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Gatley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Gatley you must check if your lease has between seventy and 90 years left. There are good reasons why a Gatley flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold premises in Gatley with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Gatley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gatley valuers.
In 2014 Dylan, started to get near to the 80-year mark with the lease on his studio flat in Gatley. In buying his home two decades ago, the lease term was of minimal concern. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension just under the wire in May. Dylan and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had descended lower than eighty years, the figure would have increased by a minimum £850.
Last Summer we were approach by Dr Sophie Vincent , who owned a studio flat in Gatley in October 2003. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Gatley with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected annually. The lease ended on 16 June 2103. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Spring we were contacted by Mr and Mrs. F Sánchez , who purchased a newly refurbished apartment in Gatley in March 2011. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Gatley with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2092. Given that there were 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.