Unfortunately that a Goffs Oak residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Goffs Oak property prices.Once your lease gets to 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 lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Goffs Oak will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Goffs Oak with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Goffs Oak 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.
Elijah was the the leasehold proprietor of a high value apartment in Goffs Oak being marketed with a lease of a little over sixty years unexpired. Elijah informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last month we were phoned by Dr I Johnson , who bought a garden apartment in Goffs Oak in August 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Goffs Oak with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 invoiced annually. The lease termination date was on 7 May 2103. Taking into account 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last Winter we were called by Mr and Mrs. Y Ward , who was assigned a lease of a studio flat in Goffs Oak in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical premises in Goffs Oak with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2083. Given that there were 57 years left we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.