When it comes to residential leasehold premises in Gunnislake, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Gunnislake with a lease nearing 81 years left should seriously think of extending it sooner than later. When the lease term has below 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Gunnislake with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Gunnislake,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gunnislake valuers.
Trailing protracted discussions with the freeholder of her ground floor flat in Gunnislake, Sarah started the lease extension process as the 80 year threshold was fast nearing. The transaction completed in July 2013. The freeholder’s costs were restricted to approximately 650 GBP.
Dr J Rogers moved into a purpose-built apartment in Gunnislake in September 1999. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Gunnislake with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease termination date was in 2100. Taking into account 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. P Adams purchased a studio flat in Gunnislake in August 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Gunnislake with an extended lease were valued around £176,200. The average ground rent payable was £65 collected yearly. The lease ended on 10 September 2080. Having 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.