Gedling leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Gedling will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society | |
| Virgin |
Using our service will provide you increased control over the value of your Gedling leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her basement flat in Gedling, Rachael started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was finalised in April 2015. The landlord’s charges were kept to an absolute minimum.
Mr A Clarke was assigned a lease of a one bedroom flat in Gedling in September 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Gedling with a long lease were valued around £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was in 2103. Taking into account 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Dr Dexter Garcia acquired a first floor apartment in Gedling in April 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Identical premises in Gedling with an extended lease were valued about £265,200. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of expenses.