Gospel Oak leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Gospel Oak will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Gospel Oak with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Gospel Oak,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gospel Oak valuers.
Max owned a high value apartment in Gospel Oak on the market with a lease of a little over fifty eight years outstanding. Max informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Mr and Mrs. V Khan , who was assigned a lease of a one bedroom apartment in Gospel Oak in January 2007. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Gospel Oak with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 10 September 2082. Having 56 years left we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.
An example of a Lease Extension decision for a Gospel Oak premises 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 related to 1 flat. The unexpired residue of the current lease was 64.77 years.