Gunnislake leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Gunnislake will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Gunnislake with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Gunnislake,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gunnislake valuers.
Mason was the the leasehold proprietor of a conversion flat in Gunnislake on the market with a lease of a few days over 59 years outstanding. Mason on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Christmas we were e-mailed by Dr Isaac García , who purchased a one bedroom flat in Gunnislake in January 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Gunnislake with a long lease were valued around £246,800. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2075. Having 50 years remaining we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus legals.
In 2013 we were phoned by Ms Jade Hall who, having acquired a first floor apartment in Gunnislake in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical premises in Gunnislake with an extended lease were valued about £203,200. The average amount of ground rent was £65 billed monthly. The lease terminated in 2086. Given that there were 61 years left we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of costs.