Goffs Oak leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Goffs Oak residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Goffs Oak you should check if your lease has between 70 and 90 years remaining. There are good reasons why a Goffs Oak leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 freeholder in Goffs Oak,the lease extension solicitors 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 Goffs Oak valuers.
Off the back of lengthy correspondence with the landlord of her ground floor apartment in Goffs Oak, Jennifer initiated the lease extension process just as the lease was nearing the all-important eighty-year mark. The legal work was finalised in August 2009. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. N Simon who, having purchased a first floor flat in Goffs Oak in October 2010. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative properties in Goffs Oak with a long lease were valued about £245,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish on 5 May 2093. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2014 we were called by Mr J Collins who, having acquired a one bedroom flat in Goffs Oak in July 2009. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative homes in Goffs Oak with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed monthly. The lease ran out on 17 September 2104. Considering the 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.