For anyone whose Godalming property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Godalming with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with procure Godalming lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Blake was the the leasehold proprietor of a high value apartment in Godalming on the market with a lease of a few days over 72 years unexpired. Blake informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert advice and secured satisfactory resolution informally and readily saleable.
Last year we were e-mailed by Mr and Mrs. T Sánchez , who bought a first floor apartment in Godalming in October 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical flats in Godalming with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expiry date was in 2099. Considering the 73 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr and Mrs. S Leroy completed a purpose-built apartment in Godalming in February 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Godalming with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed quarterly. The lease ran out in 2088. Taking into account 62 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.