The value of Godalming leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
Leasehold properties in Godalming with more than 100 years remaining 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 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 Godalming valuers.
Trailing protracted correspondence with the freeholder of her studio apartment in Godalming, Amy commenced the lease extension process as the 80 year deadline was rapidly nearing. The transaction completed in February 2005. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were approached by Dr I Gray who, having purchased a ground floor flat in Godalming in October 2005. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Godalming with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease finished in 2088. Having 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
In 2009 we were phoned by Mr and Mrs. H Ali who, having owned a newly refurbished apartment in Godalming in February 1998. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative homes in Godalming with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 14 July 2077. Considering the 52 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.