Goring leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Goring enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Goring you should investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Goring leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Goring with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Goring can be a difficult process. We recommend you obtain guidance from a lawyer 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 Goring lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Harrison, started to get near to the eighty-year threshold with the lease on his basement apartment in Goring. In buying his home twenty years ago, the lease term was of little importance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Harrison extended the lease at the eleventh hour in January. Harrison and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had slipped to less than eighty years, the price would have escalated by a minimum £950.
In 2011 we were contacted by Dr Emma Rose who, having completed a one bedroom flat in Goring in September 1995. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical flats in Goring with an extended lease were worth £191,400. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2080. Having 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of expenses.
In 2010 we were contacted by Mr O Gray who, having purchased a studio flat in Goring in April 2011. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Goring with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected annually. The lease termination date was on 18 June 2100. Considering the 74 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.