Gunnislake residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold premises in Gunnislake with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Gunnislake can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Gunnislake lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie owned a 2 bedroom flat in Gunnislake being marketed with a lease of a little over 59 years unexpired. Charlie informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. N Campbell purchased a one bedroom apartment in Gunnislake in June 2010. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Gunnislake with a long lease were worth £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 24 May 2104. Having 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
Mr and Mrs. D Carter acquired a recently refurbished apartment in Gunnislake in April 2005. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical properties in Gunnislake with a long lease were in the region of £200,800. The average ground rent payable was £65 collected every twelve months. The lease expired on 23 May 2084. Given that there were 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.