There is no doubt about it a leasehold property in Gilberdyke is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 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 primary rational as to why you should consider extending without delay. The majority of flat owners in Gilberdyke will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Gilberdyke,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gilberdyke valuers.
Kian owned a studio flat in Gilberdyke on the market with a lease of a little over 61 years left. Kian on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last year we were contacted by Mr and Mrs. P Richardson , who purchased a garden flat in Gilberdyke in November 2007. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Gilberdyke with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished on 16 June 2096. Having 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. A Rogers who, having owned a purpose-built apartment in Gilberdyke in January 2005. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Gilberdyke with a long lease were worth £218,400. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2085. Having 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.