The value of Goring leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Goring with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Goring leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold owner of a 2 bedroom apartment in Goring on the market with a lease of fraction over sixty years unexpired. Aarav informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last month we were phoned by Dr Ethan Norbert , who took over the lease of a basement flat in Goring in May 2000. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable premises in Goring with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ended in 2099. Taking into account 73 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2012 we were contacted by Mr and Mrs. N Williams who, having owned a one bedroom flat in Goring in November 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar residencies in Goring with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2088. Having 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.