There is no doubt about it a leasehold property in Gants Hill is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Gants Hill will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Gants Hill with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with procure Gants Hill 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her studio flat in Gants Hill, Freya initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension was concluded in October 2008. The freeholder’s costs were negotiated to below 700 pounds.
Last month we were phoned by Dr L Davis , who completed a garden flat in Gants Hill in January 1998. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable homes in Gants Hill with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 collected annually. The lease lapsed on 13 September 2079. Given that there were 54 years outstanding we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Gants Hill property is 59 & 59a Clarendon Gardens in February 2014. The Tribunals valuation for the freehold was £30,073.00 The unexpired residue of the current lease was 65 and 61.