With a domestic leasehold property in Godalming, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Residents in Godalming with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| 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. |
Using our service will provide you better control over the value of your Godalming leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Cameron owned a 2 bedroom flat in Godalming on the market with a lease of a little over sixty years left. Cameron on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured satisfactory deal informally and sell the property.
Last Spring we were contacted by Mr and Mrs. R Moore , who owned a recently refurbished apartment in Godalming in September 2006. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Godalming with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish on 21 May 2095. Given that there were 70 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last February we were approach by Dr V Clarke , who purchased a basement flat in Godalming in October 2003. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Godalming with a long lease were worth £218,400. The average amount of ground rent was £60 billed yearly. The lease ran out on 3 January 2084. Having 59 years left we estimated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.