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. It is the case that most Gunnislake tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Gunnislake you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Gunnislake leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a 2 bedroom flat in Gunnislake being sold with a lease of a little over 61 years left. Jacob informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr G Sánchez completed a purpose-built flat in Gunnislake in October 2000. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable properties in Gunnislake with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2098. Taking into account 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last year we were approach by Ms Louise Petit , who purchased a one bedroom flat in Gunnislake in May 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Gunnislake with a long lease were valued about £264,000. The mid-range ground rent payable was £60 collected monthly. The lease end date was in 2078. Given that there were 53 years remaining we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of costs.