Gnosall leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most 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 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Gnosall with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Gnosall,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gnosall valuers.
14 months ago William, came critically near to the eighty-year threshold with the lease on his ground floor apartment in Gnosall. In buying his property 18 years ago, the unexpired term was of little interest. Luckily, he recognised he needed to take action soon on a lease extension. William arranged for a lease extension at the eleventh hour last March. William and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had dropped lower than 80 years, the sum would have increased by a minimum £1,150.
In 2011 we were phoned by Dr T Clarke who, having owned a basement apartment in Gnosall in March 1999. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparable premises in Gnosall with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 7 March 2096. Taking into account 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last March we were called by Mr and Mrs. K Vincent , who bought a studio apartment in Gnosall in July 2001. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative residencies in Gnosall with 100 year plus lease were worth £218,400. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2085. Having 59 years outstanding we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including expenses.