Gunnislake leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most 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 must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Gunnislake flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Gunnislake can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Gunnislake lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas owned a conversion flat in Gunnislake being sold with a lease of a few days over 59 years outstanding. Lucas informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were approach by Dr John Lewis , who moved into a first floor flat in Gunnislake in June 2012. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar homes in Gunnislake with 100 year plus lease were valued about £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2082. Given that there were 56 years remaining we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus costs.
Last February we were e-mailed by Mr and Mrs. D García , who acquired a first floor apartment in Gunnislake in January 2007. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparable properties in Gunnislake with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 invoiced every twelve months. The lease expired in 2093. Given that there were 67 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including costs.