With a domestic leasehold property in Gatley, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Gatley with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the current legislation the landlord can calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless 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 the wake of 6 months of lengthy negotiations with the freeholder of her two bedroom flat in Gatley, Abbie commenced the lease extension process as the eighty year deadline was rapidly coming. The lease extension was concluded in November 2006. The landlord’s charges were kept to an absolute minimum.
Dr Seth Miller bought a basement apartment in Gatley in March 2007. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Gatley with an extended lease were in the region of £260,200. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2091. Taking into account 66 years outstanding we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus fees.
Dr Zoe Stewart acquired a one bedroom flat in Gatley in October 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical properties in Gatley with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease end date was in 2080. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.