There is no doubt about it a leasehold flat or house in Gilwern is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Gilwern will qualify for this right; that being said a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Gilwern with over 100 years outstanding on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Gilwern leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Alfie, came seriously close to the 80-year mark with the lease on his one bedroom apartment in Gilwern. In buying his property 18 years ago, the length of the lease was of no relevance. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Alfie was able to extend his lease at the eleventh hour in September. Alfie and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,150.
Ms F González purchased a recently refurbished apartment in Gilwern in October 2010. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Gilwern with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease expired in 2083. Taking into account 58 years remaining we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.
Mrs O Michel was assigned a lease of a ground floor flat in Gilwern in May 2006. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Gilwern with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed annually. The lease termination date was in 2103. Taking into account 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of professional charges.