With a long leasehold premises in Gorton, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Gorton with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Gorton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The lawyers that we work with undertake Gorton 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 lawyer we work with provide it.
Oliver was the the leasehold owner of a conversion apartment in Gorton on the market with a lease of just over sixty years unexpired. Oliver on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Dr Amber Evans acquired a basement apartment in Gorton in November 2000. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar flats in Gorton with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Last Winter we were phoned by Mr and Mrs. U François , who owned a ground floor apartment in Gorton in July 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Gorton with 100 year plus lease were valued about £275,000. The average amount of ground rent was £45 collected per annum. The lease elapsed on 20 February 2095. Taking into account 69 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.