As the length of the unexpired term of a Gunnislake domestic lease decreases so does its value and therefore the value of your property. Where the lease has, more than one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Gunnislake will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term 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 ahead.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Gunnislake lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the landlord of her basement apartment in Gunnislake, Samantha initiated the lease extension process as the 80 year threshold was fast approaching. The legal work completed in May 2015. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Ms Georgina Lee who, having acquired a garden flat in Gunnislake in May 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Gunnislake with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 26 September 2087. Having 62 years remaining we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
In 2013 we were called by Dr O Johnson who, having acquired a studio flat in Gunnislake in July 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Gunnislake with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out in 2098. Given that there were 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.