There is no doubt about it a leasehold flat or house in Gorton is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Gorton will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Gorton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Virgin |
Lease extensions in Gorton can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 dealing with Gorton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan owned a high value flat in Gorton on the market with a lease of a few days over fifty eight years unexpired. Ryan on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
Last year we were e-mailed by Mr and Mrs. J Walker , who completed a ground floor apartment in Gorton in August 1997. The question was if we could approximate the price would be for a 90 year lease extension. Identical premises in Gorton with 100 year plus lease were worth £191,400. The average ground rent payable was £55 billed quarterly. The lease terminated on 27 November 2080. Having 54 years remaining we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus professional charges.
In 2010 we were contacted by Ms N Simon who, having purchased a one bedroom apartment in Gorton in July 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Gorton with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed monthly. The lease ended in 2100. Considering the 74 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.