The re-sale value of a leasehold property in Gospel Oak depends on how long the lease has remaining. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year mark. Statute entitles Gospel Oak qualifying lessees to an additional term of ninety years over and above the unexpired term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Gospel Oak with in excess of one hundred years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Gospel Oak,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gospel Oak valuers.
In recent months Felix, came critically near to the 80-year mark with the lease on his studio apartment in Gospel Oak. In buying his flat two decades ago, the unexpired term was of no interest. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Felix extended the lease just under the wire in June. Felix and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £1,025.
In 2014 we were contacted by Mr and Mrs. D Cooper who, having acquired a basement flat in Gospel Oak in September 2004. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical premises in Gospel Oak with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 invoiced monthly. The lease ended in 2078. Having 52 years remaining we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 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 related to 1 flat. The remaining number of years on the lease was 64.77 years.