Unfortunately that a Gaydon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Gaydon property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Gaydon will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Gaydon with over 100 years outstanding 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Gaydon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Andrew was the the leasehold owner of a studio apartment in Gaydon being marketed with a lease of a little over sixty years left. Andrew informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last year we were approach by Mr and Mrs. A Girard , who completed a ground floor apartment in Gaydon in June 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar homes in Gaydon with an extended lease were valued about £265,000. The average amount of ground rent was £50 collected yearly. The lease ran out on 13 July 2098. Having 73 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last Spring we were approach by Mr and Mrs. M Campbell , who acquired a newly refurbished flat in Gaydon in April 1995. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Gaydon with an extended lease were worth £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease ended on 14 October 2078. Given that there were 53 years remaining we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus fees.