When it comes to long leasehold premises in Gospel Oak, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Anyone in Gospel Oak with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Gospel Oak with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Gospel Oak,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gospel Oak valuers.
Subsequent to lengthy correspondence with the landlord of her two bedroom apartment in Gospel Oak, Molly started the lease extension process as the eighty year deadline was fast approaching. The transaction was finalised in August 2010. The landlord’s charges were restricted to approximately 600 GBP.
Mr James López took over the lease of a newly refurbished apartment in Gospel Oak in May 2005. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative residencies in Gospel Oak with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease elapsed in 2092. Considering the 66 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
An example of a Lease Extension matter before the tribunal for a Gospel Oak flat is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case affected 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.