With a residential leasehold property in Gedling, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years remaining. Residents in Gedling with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has less than eighty years left, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Gedling 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 lawyer we work with provide it.
During the course of the last few months Toby, started to get close to the 80-year threshold with the lease on his garden flat in Gedling. Having purchased his flat twenty years previously, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Toby was able to extend his lease at the eleventh hour last July. Toby and the landlord subsequently agreed on sum of £5,500 . If the lease had slid below eighty years, the premium would have become more exhorbitant by at least £950.
Mr and Mrs. A Ramírez completed a basement apartment in Gedling in June 2008. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Gedling with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2092. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus costs.
In 2013 we were phoned by Mr N James who, having completed a basement flat in Gedling in August 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Gedling with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 7 February 2081. Given that there were 56 years outstanding we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.