Unfortunately that a Gotham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Gotham property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most flat owners in Gotham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gotham can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Gotham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah was the the leasehold proprietor of a high value flat in Gotham on the market with a lease of just over 61 years remaining. Elijah informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last Christmas we were approach by Mr and Mrs. U Mason , who bought a one bedroom flat in Gotham in February 2000. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Gotham with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed monthly. The lease ended on 21 September 2097. Having 71 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2010 we were phoned by Mr and Mrs. D Wilson who, having acquired a first floor flat in Gotham in August 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Gotham with 100 year plus lease were worth £254,200. The average ground rent payable was £60 invoiced annually. The lease expiry date was on 8 February 2077. Taking into account 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of costs.