Unfortunately that a Gospel Oak residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Gospel Oak property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Gospel Oak will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Gospel Oak,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gospel Oak valuers.
Half a year ago Harry, started to get close to the 80-year mark with the lease on his basement apartment in Gospel Oak. Having bought his home 19 years previously, the lease term was of no bearing. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Harry arranged for a lease extension at the eleventh hour in July. Harry and the freeholder subsequently agreed on a premium of £5,000 . If the lease had slipped below eighty years, the price would have escalated by a minimum £1,075.
Mr and Mrs. H Campbell owned a newly refurbished flat in Gospel Oak in March 2012. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar homes in Gospel Oak with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2077. Taking into account 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including fees.
An example of a Lease Extension decision for a Gospel Oak premises 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 related to 1 flat. The remaining number of years on the lease was 64.77 years.