The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Gillingham have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Gillingham lease extension. Putting off the costs now simply increases the premium you will eventually have to pay to extend the lease.
Leasehold residencies in Gillingham with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
Lease extensions in Gillingham can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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 dealing with Gillingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Tommy, started to get close to the 80-year threshold with the lease on his studio apartment in Gillingham. In buying his flat twenty years previously, the lease term was of minimal relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Tommy arranged for a lease extension just under the wire last September. Tommy and the landlord eventually agreed on an amount of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £900.
In 2013 we were e-mailed by Dr Teddy Rose who, having took over the lease of a one bedroom flat in Gillingham in September 2005. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Gillingham with a long lease were in the region of £193,400. The average amount of ground rent was £65 billed per annum. The lease expired on 10 June 2085. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
Last month we were called by Ms Rhiannon Williams , who bought a studio flat in Gillingham in August 2005. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Gillingham with an extended lease were valued around £255,000. The average amount of ground rent was £50 collected every twelve months. The lease ended on 20 March 2096. Considering the 70 years remaining we estimated the premium to the landlord to extend the lease to be within £10,500 and £12,000 plus legals.