The closer a residential lease in Goring nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Goring will qualify for this right; however a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Goring with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Goring 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.
Following protracted discussions with the freeholder of her first floor flat in Goring, Tia initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work was finalised in October 2007. The landlord’s charges were kept to an absolute minimum.
Last Summer we were called by Ms Emily Parker , who purchased a one bedroom apartment in Goring in September 1996. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar homes in Goring with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed in 2101. Taking into account 76 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
In 2011 we were approached by Ms Y Brown who, having purchased a one bedroom apartment in Goring in January 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar properties in Goring with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected monthly. The lease came to a finish in 2090. Taking into account 65 years remaining we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of legals.