On the balance of probabilities if you own a flat in Gunnislake you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire 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. |
Retaining our service will provide 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 want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her ground floor flat in Gunnislake, Alice initiated the lease extension process as the eighty year mark was quickly coming. The legal work was concluded in November 2014. The landlord’s costs were kept to an absolute minimum.
In 2014 we were approached by Ms I Brooks who, having bought a recently refurbished apartment in Gunnislake in June 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Gunnislake with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 collected quarterly. The lease end date was on 22 March 2086. Taking into account 60 years remaining we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of costs.
Last Summer we were approach by Mr and Mrs. V Morris , who completed a first floor apartment in Gunnislake in November 2012. We are asked if we could estimate the price could be to prolong the lease by 90 years. Similar residencies in Gunnislake with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease terminated on 16 June 2097. Having 71 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.