The value of Gwernaffield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Gwernaffield can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Gwernaffield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Archie, came critically near to the eighty-year threshold with the lease on his one bedroom apartment in Gwernaffield. In buying his flat two decades ago, the lease term was of minimal relevance. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Archie arranged for a lease extension at the eleventh hour last September. Archie and the landlord ultimately agreed on the final figure of £5,000 . If the lease had fallen lower than 80 years, the price would have become more exhorbitant by at least £1,075.
Mr Mason Walker completed a ground floor flat in Gwernaffield in March 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical residencies in Gwernaffield with an extended lease were in the region of £252,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease finished in 2090. Given that there were 65 years left we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus legals.
Dr O García completed a first floor flat in Gwernaffield in July 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative properties in Gwernaffield with an extended lease were valued around £191,400. The average ground rent payable was £55 invoiced annually. The lease expired in 2079. Having 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus legals.