The value of Gilberdyke leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Lloyds TSB Scotland||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
The lawyers that we work with procure Gilberdyke lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful correspondence with the landlord of her one bedroom flat in Gilberdyke, Erin commenced the lease extension process as the eighty year deadline was fast approaching. The legal work was concluded in November 2013. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were phoned by Dr I González , who acquired a recently refurbished apartment in Gilberdyke in January 2002. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable flats in Gilberdyke with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 billed every twelve months. The lease expired on 5 September 2088. Given that there were 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.
Dr W Evans bought a purpose-built apartment in Gilberdyke in June 2001. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Gilberdyke with 100 year plus lease were valued around £206,200. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed on 3 June 2077. Considering the 56 years remaining we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.