When it comes to residential leasehold premises in Gillingham, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in Gillingham with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Gillingham with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Gillingham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her purpose-built flat in Gillingham, Caitlin initiated the lease extension process just as her lease was approaching the crucial 80-year mark. The transaction was concluded in November 2013. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Dr Kayleigh Gray who, having was assigned a lease of a garden flat in Gillingham in February 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Gillingham with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 15 November 2104. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Dr J Lambert purchased a one bedroom apartment in Gillingham in June 2007. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Gillingham with a long lease were worth £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded on 11 October 2084. Considering the 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.