As the length of the unexpired term of a Godmanchester domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty 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 rational as to why you should extend the lease sooner rather than later. Most flat owners in Godmanchester will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
Lease extensions in Godmanchester can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Godmanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her studio flat in Godmanchester, Phoebe initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was concluded in August 2014. The landlord’s charges were negotiated to under five hundred pounds.
Mr and Mrs. A François bought a one bedroom apartment in Godmanchester in June 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar properties in Godmanchester with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed per annum. The lease concluded in 2095. Having 69 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last month we were called by Mr P Bonnet , who moved into a garden flat in Godmanchester in October 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative homes in Godmanchester with a long lease were worth £216,000. The average ground rent payable was £60 billed yearly. The lease ran out in 2084. Taking into account 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.