Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Gospel Oak. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Gospel Oak have the right to extend the lease for a further 90 years in accordance with legislation. Please give careful deliberation before delaying your Gospel Oak lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
Engaging our service will provide you better control over the value of your Gospel Oak leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler was the the leasehold owner of a high value flat in Gospel Oak being marketed with a lease of a few days over 72 years unexpired. Tyler informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Mr and Mrs. A Collins was assigned a lease of a purpose-built apartment in Gospel Oak in May 2008. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Gospel Oak with an extended lease were valued about £290,000. The average amount of ground rent was £60 collected every twelve months. The lease finished in 2105. Considering the 80 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
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 unexpired residue of the current lease was 64.77 years.