Gnosall leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Gnosall enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Gnosall you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Gnosall with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Gnosall can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 procuring Gnosall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David owned a studio flat in Gnosall being sold with a lease of a little over 61 years unexpired. David informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were David to exercise his statutory right. David obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. R Lee completed a one bedroom flat in Gnosall in March 2009. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Gnosall with an extended lease were worth £200,000. The average ground rent payable was £50 billed annually. The lease expired in 2103. Considering the 77 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Last month we were called by Mrs Bethany Bernard , who owned a one bedroom apartment in Gnosall in May 2006. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable homes in Gnosall with 100 year plus lease were worth £260,200. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2092. Taking into account 66 years remaining we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus fees.