It’s a harsh certainty that a Gunnislake residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Gunnislake property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Gunnislake will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
Retaining our service will provide you increased control over the value of your Gunnislake leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Adam, came dangerously close to the eighty-year threshold with the lease on his purpose- built apartment in Gunnislake. In buying his flat two decades ago, the unexpired term was of no interest. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Adam was able to extend his lease just under the wire last April. Adam and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have increased by a minimum £1,000.
Last year we were approach by Mr and Mrs. J Baker , who acquired a first floor apartment in Gunnislake in January 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Gunnislake with a long lease were valued around £237,600. The average amount of ground rent was £45 billed monthly. The lease ran out in 2093. Taking into account 67 years outstanding we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including expenses.
Last month we were e-mailed by Mr and Mrs. M Simon , who completed a garden flat in Gunnislake in July 1998. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Gunnislake with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2104. Taking into account 78 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.