Goole leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Goole residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Goole you should investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Goole leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold premises in Goole with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Goole leasehold, as your property will be more valuable and saleable in respect of 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.
Henry was the the leasehold proprietor of a studio apartment in Goole being sold with a lease of a few days over 61 years remaining. Henry on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured satisfactory resolution informally and sell the property.
In 2014 we were approached by Mr Aarav Ricardo who, having bought a newly refurbished flat in Goole in September 2009. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical premises in Goole with an extended lease were in the region of £183,600. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2083. Given that there were 57 years left we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
In 2010 we were contacted by Mrs Poppy François who, having purchased a newly refurbished flat in Goole in October 2009. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative homes in Goole with a long lease were valued around £245,000. The average amount of ground rent was £50 collected yearly. The lease elapsed in 2094. Considering the 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.