Stop! Your Lease Extension in Gunnislake Could Be FREE

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Many leaseholders in Gunnislake are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Gunnislake has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Gunnislake lease extension

Top reasons for lease extension now:

A Gunnislake leasehold property depreciates with the years remaining on the lease.

Gunnislake leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Gunnislake enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Gunnislake you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may not loan monies on a short lease

The propensity since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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.
Leeds Building Society 85 years remaining from the start of the mortgage.
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
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Gunnislake?

Regardless of whether you are a tenant or a freeholder in Gunnislake,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gunnislake valuers.

Gunnislake Lease Extension Case Studies:

Benjamin, Gunnislake, Cornwall

Last Summer Benjamin, started to get close to the 80-year mark with the lease on his one bedroom flat in Gunnislake. In buying his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Benjamin was able to extend his lease just in the nick of time last June. Benjamin and the landlord in the end agreed on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,050.

Gunnislake case:

Ms Paige Torres bought a ground floor flat in Gunnislake in August 1999. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable homes in Gunnislake with a long lease were in the region of £168,800. The average amount of ground rent was £60 billed quarterly. The lease ended on 10 January 2081. Taking into account 55 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.

Gunnislake case:

In 2009 we were e-mailed by Dr L Lefèvre who, having owned a garden apartment in Gunnislake in September 2000. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical premises in Gunnislake with an extended lease were worth £235,200. The average ground rent payable was £45 billed per annum. The lease terminated in 2092. Having 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.