With a domestic leasehold premises in Goffs Oak, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years left. Anyone in Goffs Oak with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years remaining, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers 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.
Subsequent to unsuccessful negotiations with the freeholder of her one bedroom flat in Goffs Oak, Aimee commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was concluded in August 2011. The landlord’s fees were restricted to less than 650 GBP.
In 2014 we were phoned by Mr K Gómez who, having took over the lease of a one bedroom flat in Goffs Oak in October 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Goffs Oak with an extended lease were in the region of £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2101. Having 75 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Summer we were e-mailed by Mr and Mrs. O Thomas , who took over the lease of a ground floor flat in Goffs Oak in July 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative homes in Goffs Oak with an extended lease were worth £168,800. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2081. Given that there were 55 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.