Gunnislake leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be due. Flat owners in Gunnislake will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Gunnislake with over 100 years remaining 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Gunnislake,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gunnislake valuers.
Seth was the the leasehold owner of a studio apartment in Gunnislake being sold with a lease of a little over sixty years left. Seth on an informal basis spoke with his landlord being a well known Bristol-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 rise in the rent to £125 annually. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2011 we were called by Mr G Morgan who, having acquired a one bedroom apartment in Gunnislake in January 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Gunnislake with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease expired in 2102. Having 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Dr Felix Jones moved into a one bedroom flat in Gunnislake in May 1997. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Gunnislake with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease finished on 26 August 2082. Having 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of costs.