It’s a harsh truth that a Goole residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Goole property prices.Once your lease gets to 85ish years, 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 under eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Goole will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Goole,the lease extension lawyers 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 Goole valuers.
Last year Matthew, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Goole. In buying his property two decades ago, the length of the lease was of little relevance. by good luck, he noticed he needed to take steps soon on Extending the lease. Matthew extended the lease at the eleventh hour in March. Matthew and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had slid below eighty years, the price would have increased by a minimum £900.
Mrs Y Brooks took over the lease of a one bedroom apartment in Goole in July 2008. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Goole with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed yearly. The lease came to a finish in 2092. Given that there were 67 years remaining we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.
Last Summer we were approach by Dr Oliver James , who was assigned a lease of a purpose-built apartment in Goole in July 1997. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Goole with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 1 January 2103. Given that there were 78 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.