With a residential leasehold premises in Gidea Park, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Gidea Park with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the current Act the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Gidea Park can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Gidea Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her first floor flat in Gidea Park, Bethan started the lease extension process as the 80 year threshold was rapidly nearing. The lease extension completed in February 2011. The freeholder’s charges were kept to an absolute minimum.
Last June we were e-mailed by Ms D Richardson , who acquired a one bedroom flat in Gidea Park in May 2001. The question was if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Gidea Park with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed on 6 May 2095. Taking into account 69 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Gidea Park flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case was in relation to 1 flat. The unexpired residue of the current lease was 57.5 years.