The re-sale value of a leasehold property in Gilberdyke is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be concluded ahead of the 80 year threshold. Current legislation enables Gilberdyke qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Gilberdyke can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Gilberdyke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her basement apartment in Gilberdyke, Megan initiated the lease extension process as the 80 year threshold was fast coming. The transaction was concluded in August 2006. The landlord’s charges were restricted to below 650 pounds.
Mr Harrison Fournier was assigned a lease of a one bedroom flat in Gilberdyke in November 2001. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative homes in Gilberdyke with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2105. Given that there were 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last year we were e-mailed by Dr G Moreau , who purchased a one bedroom flat in Gilberdyke in March 2007. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in Gilberdyke with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease expired in 2094. Given that there were 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.