The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Gunnislake have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Gunnislake lease extension. Shelving the costs now simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Gunnislake with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Gunnislake leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her leasehold apartment in Gunnislake, Eleanor started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension was finalised in January 2013. The landlord’s costs were restricted to a tad over 650 GBP.
Dr J Mercier purchased a basement flat in Gunnislake in March 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Gunnislake with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected per annum. The lease came to a finish on 3 January 2075. Having 51 years remaining we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus legals.
Mr and Mrs. D Thomas bought a studio flat in Gunnislake in September 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Gunnislake with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease termination date was in 2086. Given that there were 62 years left we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.