Godmanchester leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Godmanchester enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Godmanchester you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancing solicitors that we work with handle Godmanchester 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 2014 Tyler, came perilously close to the eighty-year threshold with the lease on his leasehold flat in Godmanchester. Having purchased his home two decades ago, the length of the lease was of minimal concern. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Tyler was able to extend his lease at the eleventh hour last August. Tyler and the freeholder ultimately settled on the final figure of £5,000 . If the lease had gone lower than eighty years, the price would have become more exhorbitant by at least £875.
Mr and Mrs. H Lewis bought a one bedroom apartment in Godmanchester in October 1996. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Godmanchester with a long lease were valued around £198,800. The average amount of ground rent was £55 collected yearly. The lease termination date was in 2081. Considering the 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.
Last Winter we were e-mailed by Dr S Carter , who completed a ground floor apartment in Godmanchester in June 2012. The question was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Godmanchester with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease expired in 2101. Having 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.