It’s an underpublicised truth that a Goodrich residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Goodrich property market.Where your lease has approximately 90 years left, 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 falls below 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Goodrich will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Goodrich with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Santander | |
| TSB | |
| The Mortgage Works |
Lease extensions in Goodrich can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Goodrich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her two bedroom flat in Goodrich, Rosie initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was concluded in August 2005. The freeholder’s costs were negotiated to about 600 pounds.
In 2013 we were phoned by Dr Lydia Pérez who, having completed a purpose-built apartment in Goodrich in February 2002. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Identical residencies in Goodrich with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ended in 2079. Given that there were 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.
Last April we were contacted by Mr and Mrs. R Moore , who was assigned a lease of a basement flat in Goodrich in November 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Goodrich with an extended lease were valued around £290,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 8 February 2099. Considering the 73 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.