Gwernaffield Lease Extension - Free Consultation

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Why you should start your Gwernaffield lease extension


Top reasons for lease extension now:

Increase your lease and increase your Gwernaffield property value

The market 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 extending the lease can escalate significantly once the remaining term is below than 80 years

Gwernaffield property with a lease extension has roughly the same value as a freehold

Leasehold properties in Gwernaffield with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to lend on a short lease

Nearly all mortgage companies require a lengthy amount of time remaining on any leasehold property before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should bear in mind that it is likely that someone wishing to acquire your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of your property could suffer. Since 2008 the majority of mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Coventry Building Society 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.
Halifax Minimum 70 years from the date of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Why use us for your lease extension in Gwernaffield?

Irrespective of whether you are a tenant or a freeholder in Gwernaffield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gwernaffield valuers.

Gwernaffield Lease Extension Case Summaries:

Jasper, Gwernaffield, Flintshire

16 months ago Jasper, started to get close to the 80-year threshold with the lease on his first floor flat in Gwernaffield. Having bought his flat twenty years previously, the unexpired term was of minimal importance. Luckily, he realised he needed to take action soon on Extending the lease. Jasper arranged for a lease extension just under the wire in September. Jasper and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have increased by a minimum £950.

Gwernaffield case:

Last November we were called by Ms Eleanor Sharif , who owned a garden apartment in Gwernaffield in August 2007. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative premises in Gwernaffield with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out on 15 July 2095. Taking into account 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.

Gwernaffield case:

Mr and Mrs. E King took over the lease of a ground floor flat in Gwernaffield in June 2002. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Gwernaffield with 100 year plus lease were in the region of £230,800. The average amount of ground rent was £60 collected every twelve months. The lease ran out on 9 March 2084. Having 60 years left we approximated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.