Gunnislake leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Flat owners in Gunnislake will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Gunnislake with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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.
Following unsuccessful discussions with the freeholder of her first floor flat in Gunnislake, Rachel initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction was concluded in February 2015. The landlord’s fees were restricted to a tad over 500 pounds.
In 2012 we were called by Dr K Alexander who, having completed a one bedroom flat in Gunnislake in August 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Gunnislake with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish in 2075. Having 53 years as a residual term we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus costs.
Mr Jayden Norbert took over the lease of a ground floor apartment in Gunnislake in May 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Gunnislake with a long lease were valued around £225,400. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 22 October 2086. Considering the 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus expenses.