With a long leasehold property in Goodrich, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Goodrich with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Goodrich 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 conveyancer we work with provide it.
During the course of the last few months Teddy, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Goodrich. Having purchased his home two decades ago, the length of the lease was of no importance. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Teddy arranged for a lease extension just under the wire last September. Teddy and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £1,050.
In 2011 we were approached by Mr and Mrs. P Turner who, having was assigned a lease of a one bedroom flat in Goodrich in August 2003. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Goodrich with 100 year plus lease were in the region of £252,800. The mid-range amount of ground rent was £65 collected yearly. The lease expired on 6 April 2091. Given that there were 65 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.
Mr Noah Stewart moved into a recently refurbished flat in Goodrich in October 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Goodrich with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 billed per annum. The lease terminated in 2080. Given that there were 54 years remaining we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of fees.