Unfortunately that a Gilberdyke residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Gilberdyke property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be payable. Most flat owners in Gilberdyke will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Gilberdyke,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gilberdyke valuers.
Following unsuccessful correspondence with the landlord of her leasehold apartment in Gilberdyke, Louise commenced the lease extension process as the 80 year threshold was fast advancing. The legal work completed in July 2008. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr Harrison Alexander , who purchased a recently refurbished flat in Gilberdyke in January 2011. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar flats in Gilberdyke with a long lease were valued about £184,000. The average amount of ground rent was £55 billed quarterly. The lease end date was on 9 July 2078. Taking into account 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
Last July we were contacted by Mrs Mia Evans , who purchased a studio flat in Gilberdyke in January 1995. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Gilberdyke with a long lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease finished in 2098. Considering the 73 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.