The re-sale value of a leasehold property in Gwernaffield depends on how long the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed well before the eighty year cut off point. Statute enables Gwernaffield qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent 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 |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gwernaffield can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Gwernaffield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Harrison, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Gwernaffield. In buying his flat 19 years previously, the unexpired term was of no significance. Luckily, he realised he needed to take steps soon on Extending the lease. Harrison extended the lease just under the wire last July. Harrison and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had gone to less than eighty years, the amount would have escalated by at least £850.
Last Winter we were phoned by Mr and Mrs. S Cox , who took over the lease of a first floor flat in Gwernaffield in September 2010. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Identical premises in Gwernaffield with 100 year plus lease were valued about £243,000. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2089. Taking into account 63 years remaining we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.
Last year we were phoned by Mr and Mrs. B Taylor , who took over the lease of a ground floor flat in Gwernaffield in March 2008. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar flats in Gwernaffield with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 billed monthly. The lease lapsed in 2078. Having 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.