As the the remaining lease term of a Gidea Park residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Gidea Park will meet the qualifying criteria; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Gidea Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gidea Park valuers.
Last year Benjamin, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Gidea Park. In buying his home two decades ago, the length of the lease was of minimal importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Benjamin extended the lease just under the wire last August. Benjamin and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the price would have increased by at least £1,150.
Mr Ryan Bernard was assigned a lease of a one bedroom apartment in Gidea Park in January 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Gidea Park with a long lease were in the region of £203,200. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2087. Considering the 61 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Gidea Park property 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 related to 1 flat. The remaining number of years on the lease was 57.5 years.