Unfortunately 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 early years due to the reduction being disguised by increases in the Godmanchester property market.Where your lease has approximately 90 years left, you need to 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 below 80 years - otherwise a higher amount will be payable. Most flat owners in Godmanchester will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you increased 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her ground floor apartment in Godmanchester, Niamh initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was finalised in July 2014. The landlord’s costs were negotiated to about four hundred pounds.
In 2010 we were phoned by Ms U King who, having was assigned a lease of a first floor flat in Godmanchester in October 2005. We are asked if we could estimate the price could be for a 90 year lease extension. Identical homes in Godmanchester with an extended lease were worth £233,200. The average ground rent payable was £60 billed every twelve months. The lease terminated on 9 October 2086. Taking into account 61 years remaining we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of legals.
Last July we were phoned by Mr Connor Bertrand , who took over the lease of a one bedroom apartment in Godmanchester in November 2009. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Godmanchester with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 collected every twelve months. The lease finished on 5 February 2075. Given that there were 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.