Gilwern leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Gilwern tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Gilwern you should investigate if your lease has between seventy and 90 years left. There are good reasons why a Gilwern leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Gilwern,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gilwern valuers.
Last year Muhammad, came precariously close to the eighty-year threshold with the lease on his studio apartment in Gilwern. Having bought his home twenty years ago, the lease term was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Muhammad arranged for a lease extension just under the wire last June. Muhammad and the freeholder in the end settled on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,000.
In 2010 we were called by Mr and Mrs. A White who, having took over the lease of a newly refurbished apartment in Gilwern in January 1999. The question was if we could estimate the price would be to extend the lease by ninety years. Comparable premises in Gilwern with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 collected quarterly. The lease elapsed in 2094. Given that there were 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Last Spring we were approach by Mr and Mrs. C Green , who purchased a purpose-built flat in Gilwern in April 2012. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable homes in Gilwern with a long lease were in the region of £213,600. The average ground rent payable was £60 collected monthly. The lease came to a finish on 12 September 2083. Having 57 years remaining we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of costs.