Gorleston 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 gets more expensive. The majority of owners of residential leasehold property in Gorleston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Gorleston you would be well advised 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 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Gorleston with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Gorleston,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gorleston valuers.
Owen owned a high value flat in Gorleston being marketed with a lease of fraction over 59 years outstanding. Owen informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last April we were phoned by Mr and Mrs. D Brooks , who acquired a studio flat in Gorleston in November 1997. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar residencies in Gorleston with a long lease were worth £261,600. The average ground rent payable was £60 billed per annum. The lease concluded in 2078. Given that there were 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including fees.
In 2011 we were contacted by Ms Courtney Edwards who, having owned a studio apartment in Gorleston in July 2006. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable residencies in Gorleston with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish on 26 March 2089. Taking into account 63 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus professional charges.