Gravesend leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Gravesend enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Gravesend you should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Gravesend with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 freeholder in Gravesend,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gravesend valuers.
Last year Daniel, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Gravesend. In buying his flat two decades ago, the unexpired term was of little importance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Daniel arranged for a lease extension just under the wire last June. Daniel and the freeholder via the management company ultimately settled on a premium of £5,500 . If the lease had gone lower than eighty years, the premium would have become more costly by at least £950.
Mr Y González bought a one bedroom flat in Gravesend in March 1997. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Gravesend with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £55 billed per annum. The lease expiry date was in 2099. Considering the 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Last Christmas we were called by Dr Nicole David , who acquired a basement apartment in Gravesend in May 1997. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Gravesend with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 15 August 2079. Taking into account 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.