There is no doubt about it a leasehold flat or house in Gorleston is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Gorleston will meet the qualifying criteria; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Gorleston with more than 100 years outstanding on the lease are often 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 purchasing the freehold unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Gorleston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gorleston valuers.
Ibrahim was the the leasehold owner of a studio apartment in Gorleston being sold with a lease of a few days over fifty eight years remaining. Ibrahim informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2013 we were phoned by Mr A Lewis who, having took over the lease of a one bedroom apartment in Gorleston in August 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Gorleston with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2094. Considering the 69 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Mrs Rebecca Bailey moved into a one bedroom apartment in Gorleston in April 1998. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar flats in Gorleston with an extended lease were in the region of £290,000. The average ground rent payable was £55 billed per annum. The lease ran out on 25 June 2105. Taking into account 80 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.