The closer a residential lease in Gamlingay nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Gamlingay will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Gamlingay,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gamlingay valuers.
Ibrahim was the the leasehold proprietor of a 2 bedroom apartment in Gamlingay on the market with a lease of a little over 72 years remaining. Ibrahim on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last Autumn we were contacted by Mr and Mrs. W Khan , who purchased a first floor flat in Gamlingay in February 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Gamlingay with a long lease were worth £176,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease elapsed on 8 October 2081. Taking into account 56 years remaining we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.
Last year we were phoned by Mr and Mrs. E Walker , who took over the lease of a first floor flat in Gamlingay in January 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar flats in Gamlingay with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 19 August 2092. Given that there were 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including costs.