Top reasons for Godshill lease extension

Top reasons for lease extension now:

A Godshill leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Godshill is impacted by how long the lease has left to run. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation entitles Godshill qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Godshill with over 100 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.

Lenders will not issue a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Godshill lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Godshill leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Godshill Lease Extension Case Summaries:

Kelsey, Godshill, Isle Of Wight,

Trailing lengthy correspondence with the freeholder of her one bedroom flat in Godshill, Kelsey initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension was finalised in April 2013. The freeholder’s costs were negotiated to a tad over 650 pounds.

Godshill case:

Last year we were phoned by Mr and Mrs. B Johnson , who purchased a garden flat in Godshill in March 2001. We are asked if we could estimate the price could be for a ninety year lease extension. Identical homes in Godshill with a long lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease concluded in 2102. Having 76 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.

Godshill case:

In 2012 we were called by Mr and Mrs. W Moore who, having took over the lease of a basement apartment in Godshill in July 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable premises in Godshill with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2082. Taking into account 56 years remaining we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including legals.