It’s a harsh certainty that a Gunnislake residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Gunnislake property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Gunnislake will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Gunnislake leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Alex, came very near to the 80-year mark with the lease on his purpose- built apartment in Gunnislake. In buying his flat 19 years ago, the lease term was of minimal importance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Alex extended the lease just in the nick of time in September. Alex and the freeholder via the managing agents ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,150.
Mrs K Young took over the lease of a one bedroom apartment in Gunnislake in June 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Gunnislake with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2083. Given that there were 57 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.
Ms W Watson bought a basement apartment in Gunnislake in September 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Gunnislake with an extended lease were valued about £245,000. The average amount of ground rent was £45 billed yearly. The lease ran out in 2094. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.