Unfortunately that a Gunnislake residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Gunnislake property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 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 The majority of flat owners in Gunnislake will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure Gunnislake lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Luke, came very near to the 80-year threshold with the lease on his leasehold apartment in Gunnislake. Having bought his flat 18 years ago, the length of the lease was of no interest. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Luke arranged for a lease extension just in the nick of time last January. Luke and the freeholder eventually settled on sum of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,125.
Last February we were contacted by Mr Elijah Bertrand , who purchased a basement flat in Gunnislake in August 2005. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative residencies in Gunnislake with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2095. Considering the 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Dr Maisie Anderson took over the lease of a first floor apartment in Gunnislake in August 2000. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Gunnislake with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease end date was in 2075. Considering the 50 years remaining we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.