The market value of Godmanchester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is below than eighty years
Leasehold premises in Godmanchester with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Godmanchester,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Godmanchester valuers.
Off the back of lengthy correspondence with the landlord of her one bedroom flat in Godmanchester, Amber started the lease extension process as the eighty year mark was fast coming. The lease extension was finalised in October 2007. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. M Khan , who owned a basement flat in Godmanchester in June 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Godmanchester with a long lease were worth £260,200. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2091. Given that there were 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus professional charges.
Mr and Mrs. V Rodríguez moved into a basement flat in Godmanchester in March 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Godmanchester with a long lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced per annum. The lease ended in 2080. Considering the 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.