Unfortunately that a Goole residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Goole property prices.Where your lease has approximately 90 years left, you need to start considering 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 slips under eighty years - otherwise a higher amount will be payable. Most flat owners in Goole will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 gives you enhanced control over the value of your Goole leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Stanley, started to get close to the eighty-year mark with the lease on his basement apartment in Goole. In buying his home twenty years previously, the length of the lease was of no relevance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Stanley extended the lease at the eleventh hour last May. Stanley and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,125.
Last year we were approach by Ms Lydia Rogers , who bought a basement flat in Goole in May 2009. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Goole with an extended lease were valued about £280,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 16 October 2103. Taking into account 78 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.
In 2014 we were approached by Mr and Mrs. O Adams who, having completed a basement flat in Goole in November 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Comparable premises in Goole with an extended lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2083. Having 58 years left we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of costs.