Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Gorton. Clearly, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Gorton have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful deliberation before delaying your Gorton lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Gorton can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 dealing with Gorton 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 Ollie, started to get close to the 80-year threshold with the lease on his first floor apartment in Gorton. In buying his home two decades ago, the length of the lease was of little bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Ollie extended the lease at the eleventh hour last January. Ollie and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,025.
In 2010 we were e-mailed by Mr and Mrs. T González who, having acquired a one bedroom flat in Gorton in October 2006. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable homes in Gorton with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out in 2086. Taking into account 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including fees.
In 2013 we were e-mailed by Dr M Girard who, having completed a one bedroom flat in Gorton in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Gorton with 100 year plus lease were in the region of £166,800. The mid-range ground rent payable was £55 invoiced monthly. The lease terminated in 2075. Considering the 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.