Goole 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 your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Goole residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Goole you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Goole leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Goole 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 conveyancer we work with provide it.
Zachary was the the leasehold proprietor of a studio apartment in Goole on the market with a lease of fraction over 59 years remaining. Zachary informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2010 we were approached by Mr and Mrs. C Rodríguez who, having owned a purpose-built flat in Goole in May 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Goole with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed in 2105. Taking into account 79 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Autumn we were e-mailed by Mr and Mrs. M Collins , who took over the lease of a garden flat in Goole in March 2010. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar flats in Goole with 100 year plus lease were worth £193,400. The average ground rent payable was £65 billed quarterly. The lease finished on 6 February 2085. Taking into account 59 years left we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.