The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Gunnislake have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before delaying your Gunnislake lease extension. Postponing that expense today simply escalates the premium you will eventually have to pay for a lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Gunnislake,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gunnislake valuers.
Half a year ago Jake, started to get close to the 80-year mark with the lease on his first floor apartment in Gunnislake. Having bought his flat two decades ago, the length of the lease was of minimal interest. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jake arranged for a lease extension just in the nick of time in April. Jake and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £900.
Last year we were e-mailed by Ms Rhiannon Harris , who moved into a one bedroom flat in Gunnislake in September 2005. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative residencies in Gunnislake with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 16 April 2095. Considering the 69 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2013 we were called by Mr M Richardson who, having acquired a one bedroom flat in Gunnislake in February 2011. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Gunnislake with a long lease were valued around £285,000. The average amount of ground rent was £55 invoiced annually. The lease ran out in 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.