When it comes to domestic leasehold premises in Goffs Oak, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Leasehold owners in Goffs Oak with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Goffs Oak with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
Irrespective of whether you are a tenant or a landlord in Goffs Oak,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 Goffs Oak valuers.
After protracted discussions with the freeholder of her ground floor apartment in Goffs Oak, Alicia initiated the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in August 2013. The landlord’s charges were restricted to approximately 500 pounds.
Last September we were approach by Mr and Mrs. N Flores , who moved into a first floor apartment in Goffs Oak in July 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar homes in Goffs Oak with a long lease were valued about £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended in 2089. Taking into account 63 years outstanding we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
Dr H Petit moved into a first floor apartment in Goffs Oak in October 1998. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Goffs Oak with a long lease were in the region of £265,000. The average ground rent payable was £50 billed every twelve months. The lease ended on 18 September 2100. Considering the 74 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.