Godalming 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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Godalming residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Godalming you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Godalming leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold premises in Godalming with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Godalming,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Godalming valuers.
Last Autumn Jude, started to get close to the 80-year threshold with the lease on his leasehold flat in Godalming. Having purchased his home two decades ago, the length of the lease was of minimal bearing. Luckily, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jude was able to extend his lease just ahead of time in September. Jude and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If the lease had slipped below 80 years, the figure would have become more exhorbitant by at least £875.
Dr Zoe Gunderson bought a first floor apartment in Godalming in July 2001. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Godalming with an extended lease were worth £210,000. The average amount of ground rent was £50 collected monthly. The lease end date was on 17 July 2106. Given that there were 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last month we were approach by Mr and Mrs. A Alexander , who acquired a first floor apartment in Godalming in July 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical premises in Godalming with an extended lease were valued about £275,000. The average ground rent payable was £45 billed yearly. The lease finished in 2095. Taking into account 69 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.