Gorleston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Gorleston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Gorleston you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Gorleston flat owner with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Gorleston 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 conveyancing solicitor we work with provide it.
Aiden owned a conversion flat in Gorleston on the market with a lease of just over fifty eight years outstanding. Aiden informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
In 2012 we were contacted by Mr and Mrs. V Roberts who, having owned a purpose-built apartment in Gorleston in August 2005. The question was if we could approximate the premium would be to prolong the lease by 90 years. Identical properties in Gorleston with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 4 September 2075. Having 50 years remaining we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of legals.
In 2013 we were contacted by Mrs O Mercier who, having was assigned a lease of a one bedroom apartment in Gorleston in March 1996. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical homes in Gorleston with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated in 2086. Taking into account 61 years outstanding we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.