Godmanchester leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Godmanchester will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Godmanchester with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Godmanchester can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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.
During the course of the last few months Seth, came perilously near to the eighty-year mark with the lease on his ground floor apartment in Godmanchester. Having bought his property two decades ago, the unexpired term was of little significance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Seth was able to extend his lease just under the wire in August. Seth and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by at least £1,150.
Last Spring we were called by Mr and Mrs. D Ali , who moved into a one bedroom apartment in Godmanchester in February 2004. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Godmanchester with 100 year plus lease were worth £285,000. The average ground rent payable was £45 collected every twelve months. The lease concluded on 4 September 2097. Taking into account 71 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Dr D Howard took over the lease of a first floor apartment in Godmanchester in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Godmanchester with a long lease were valued around £225,800. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 18 March 2086. Given that there were 60 years left we estimated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.