When it comes to residential leasehold premises in Goodwick, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Goodwick with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Goodwick,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Goodwick valuers.
William was the the leasehold owner of a conversion flat in Goodwick being marketed with a lease of just over 61 years unexpired. William informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were William to exercise his statutory right. William procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last November we were phoned by Ms Bethany Reed , who moved into a studio flat in Goodwick in January 1999. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable properties in Goodwick with an extended lease were valued about £255,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2095. Considering the 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Mr and Mrs. M Campbell completed a one bedroom flat in Goodwick in July 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Goodwick with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out in 2075. Considering the 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.