With a domestic leasehold property in Godmanchester, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Godmanchester with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has under eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Godmanchester can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience 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.
Rory owned a 2 bedroom apartment in Godmanchester being marketed with a lease of fraction over 72 years unexpired. Rory informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Ms A Campbell took over the lease of a one bedroom apartment in Godmanchester in March 1999. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparable flats in Godmanchester with a long lease were worth £206,200. The average amount of ground rent was £60 billed annually. The lease ran out in 2082. Given that there were 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.
In 2011 we were approached by Mr and Mrs. P Morgan who, having took over the lease of a newly refurbished flat in Godmanchester in June 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar properties in Godmanchester with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected per annum. The lease ran out on 11 September 2102. Having 76 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.