On the balance of probabilities if you own a flat in Gwernaffield you actually own a long leasehold interest over your property
Leasehold properties in Gwernaffield 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with handle Gwernaffield 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 conveyancer we work with provide it.
Archie owned a studio flat in Gwernaffield on the market with a lease of just over 59 years outstanding. Archie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2009 we were approached by Mr U Baker who, having purchased a one bedroom flat in Gwernaffield in June 2000. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Gwernaffield with a long lease were in the region of £235,600. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 6 August 2088. Considering the 62 years remaining we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
In 2013 we were contacted by Mrs Freya Lambert who, having bought a basement apartment in Gwernaffield in September 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar flats in Gwernaffield with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed on 8 March 2077. Having 51 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.