Gospel Oak leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Gospel Oak residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Gospel Oak you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Gospel Oak flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Gospel Oak 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Gospel Oak can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Gospel Oak lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Joseph, came seriously near to the eighty-year mark with the lease on his studio flat in Gospel Oak. Having bought his home two decades ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Joseph was able to extend his lease just in the nick of time last September. Joseph and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £1,025.
Last Christmas we were called by Ms B Mercier , who acquired a recently refurbished apartment in Gospel Oak in February 1996. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Gospel Oak with an extended lease were valued around £166,400. The average ground rent payable was £60 collected annually. The lease end date was on 11 July 2079. Considering the 54 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
An example of a Lease Extension decision for a Gospel Oak residence 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 unexpired lease term was 64.77 years.