For anyone whose Gedling flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Gedling with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you increased control over the value of your Gedling leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jack, came seriously near to the eighty-year mark with the lease on his purpose- built flat in Gedling. Having bought his property twenty years ago, the lease term was of minimal relevance. Luckily, he became aware that he needed to take action soon on Extending the lease. Jack was able to extend his lease at the eleventh hour in January. Jack and the landlord ultimately settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the price would have increased by a minimum £1,000.
Last March we were e-mailed by Mr Ethan Rodríguez , who purchased a garden apartment in Gedling in October 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Gedling with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished in 2098. Considering the 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
Mr and Mrs. N Norbert completed a studio flat in Gedling in October 2001. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparative residencies in Gedling with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected quarterly. The lease ran out on 4 October 2087. Taking into account 61 years left we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of costs.