It’s a harsh truth that a Godshill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Godshill property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Godshill will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Godshill 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Godshill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Godshill valuers.
In the wake of 6 months of protracted correspondence with the landlord of her leasehold flat in Godshill, Laura initiated the lease extension process as the 80 year deadline was fast coming. The lease extension was concluded in October 2010. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were phoned by Dr T Campbell , who purchased a garden flat in Godshill in July 2004. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable properties in Godshill with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 billed per annum. The lease termination date was in 2099. Having 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Spring we were called by Dr S Wood , who was assigned a lease of a one bedroom apartment in Godshill in April 2002. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical residencies in Godshill with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced monthly. The lease lapsed on 2 June 2079. Given that there were 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.