The market value of a leasehold property in Guisborough depends on how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year threshold. Current legislation entitles Guisborough qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Guisborough with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Guisborough can be a difficult process. We recommend you secure guidance from a lawyer 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 in-depth market knowledge procuring Guisborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Seth owned a studio flat in Guisborough being marketed with a lease of a little over fifty eight years remaining. Seth on an informal basis approached his landlord being a well known Bristol-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 £125 annually. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Dr Poppy Kelly was assigned a lease of a first floor flat in Guisborough in April 2012. We are asked if we could estimate the price could be for a 90 year lease extension. Similar residencies in Guisborough with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 invoiced per annum. The lease terminated in 2090. Given that there were 64 years left we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.
Mr and Mrs. B Clark acquired a purpose-built apartment in Guisborough in October 2003. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative homes in Guisborough with an extended lease were valued about £270,000. The average amount of ground rent was £55 invoiced annually. The lease terminated on 24 May 2101. Having 75 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.