The market value of Gilberdyke leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Gilberdyke with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Gilberdyke leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold proprietor of a high value flat in Gilberdyke being sold with a lease of a few days over 72 years left. Joshua on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Last month we were e-mailed by Mr P Bailey , who purchased a first floor flat in Gilberdyke in May 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Gilberdyke with 100 year plus lease were valued about £252,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2090. Given that there were 65 years left we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.
Last year we were e-mailed by Mr and Mrs. L Lee , who bought a studio flat in Gilberdyke in September 2011. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Gilberdyke with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease terminated on 11 June 2079. Considering the 54 years left we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.