Unfortunately that a Guisborough residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Guisborough property market.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 dips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Guisborough will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Guisborough can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 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.
Jack owned a conversion apartment in Guisborough being sold with a lease of just over sixty years remaining. Jack informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were called by Mrs E Garcia who, having completed a newly refurbished flat in Guisborough in July 2010. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Guisborough with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2075. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of legals.
In 2010 we were e-mailed by Mr C Martin who, having owned a purpose-built apartment in Guisborough in November 1995. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical flats in Guisborough with 100 year plus lease were worth £208,200. The average ground rent payable was £65 collected every twelve months. The lease finished in 2086. Given that there were 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus legals.