As the length of the unexpired term of a Gospel Oak residential lease lessens so does its value and therefore the value of your property. Where the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Gospel Oak will meet the qualifying criteria; that being said a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Gospel Oak with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
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. |
Chelsea 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. |
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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Gospel Oak 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 lawyer we work with provide it.
Kian was the the leasehold proprietor of a studio apartment in Gospel Oak on the market with a lease of just over sixty years remaining. Kian informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were phoned by Mr and Mrs. C Martínez , who owned a one bedroom apartment in Gospel Oak in January 2007. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable homes in Gospel Oak with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 19 November 2088. Having 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.
An example of a Lease Extension decision for a Gospel Oak residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case affected 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.