It’s an underpublicised truth that a Godmanchester residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Godmanchester property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Most flat owners in Godmanchester will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Godmanchester leasehold, as your property will be more valuable and saleable in relation to the 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.
Following protracted correspondence with the landlord of her one bedroom apartment in Godmanchester, Laura started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was finalised in May 2013. The freeholder’s fees were restricted to approximately 550 pounds.
Mrs Emma Khan bought a basement flat in Godmanchester in August 2003. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Godmanchester with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2086. Given that there were 60 years remaining we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of costs.
In 2011 we were contacted by Mr and Mrs. E Mitchell who, having completed a newly refurbished apartment in Godmanchester in January 2006. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative premises in Godmanchester with an extended lease were worth £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 15 October 2106. Taking into account 80 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.