The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Gosforth can extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Gosforth lease extension. Postponing that expense today simply escalates the price you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Gosforth 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.
Subsequent to unsuccessful correspondence with the freeholder of her ground floor flat in Gosforth, Katherine commenced the lease extension process as the 80 year deadline was swiftly nearing. The transaction was concluded in April 2006. The landlord’s costs were restricted to approximately 600 pounds.
Mr and Mrs. R Wood owned a newly refurbished flat in Gosforth in May 2004. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical premises in Gosforth with an extended lease were in the region of £184,000. The average amount of ground rent was £55 invoiced per annum. The lease terminated in 2078. Having 53 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
Last month we were phoned by Mr and Mrs. U Ward , who acquired a garden apartment in Gosforth in March 2006. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar properties in Gosforth with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed monthly. The lease concluded in 2098. Given that there were 73 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.