Gorton leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Gorton will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Gorton with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 conveyancer we work with provide it.
Michael owned a conversion apartment in Gorton on the market with a lease of fraction over 61 years unexpired. Michael informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mrs Jasmine Campbell owned a ground floor apartment in Gorton in April 1998. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Gorton with a long lease were valued around £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.
In 2013 we were approached by Mr and Mrs. B François who, having was assigned a lease of a purpose-built apartment in Gorton in January 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Gorton with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease lapsed on 3 June 2076. Considering the 50 years remaining we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.