It’s an underpublicised certainty that a Gwernaffield residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Gwernaffield property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Gwernaffield will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Gwernaffield with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| 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 procure guidance from a lawyer and valuer with experience in this area.
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.
Trailing unsuccessful discussions with the freeholder of her first floor apartment in Gwernaffield, Katherine commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction was concluded in July 2015. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were approached by Mrs B Stewart who, having owned a purpose-built flat in Gwernaffield in July 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Gwernaffield with an extended lease were in the region of £200,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish on 25 October 2102. Taking into account 77 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Last year we were e-mailed by Mr and Mrs. N Laurent , who owned a ground floor apartment in Gwernaffield in February 1998. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical homes in Gwernaffield with an extended lease were worth £260,200. The average amount of ground rent was £65 billed per annum. The lease lapsed on 19 March 2091. Having 66 years outstanding we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including fees.