The only way is down when it comes to Guisborough lease terms. Guisborough flats that have a lease term fewer than 80 years will reduce in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Guisborough,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 in-depth market knowledge and the close ties they enjoy with Guisborough valuers.
Gabriel owned a conversion apartment in Guisborough on the market with a lease of fraction over fifty eight years outstanding. Gabriel informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Spring we were e-mailed by Dr H Lefebvre , who acquired a garden flat in Guisborough in February 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Guisborough with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 25 March 2082. Having 57 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
Last month we were approach by Mr and Mrs. J Khan , who took over the lease of a first floor apartment in Guisborough in October 1999. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Guisborough with a long lease were valued around £245,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 26 July 2093. Taking into account 68 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.