On the balance of probabilities if you own a flat in Gilwern you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless 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 experience and the close ties they enjoy with Gilwern valuers.
James was the the leasehold owner of a high value flat in Gilwern on the market with a lease of just over 59 years left. James on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last Spring we were called by Mrs E Hernández , who was assigned a lease of a recently refurbished flat in Gilwern in April 2001. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative properties in Gilwern with an extended lease were valued around £248,000. The average amount of ground rent was £65 collected quarterly. The lease ended on 10 November 2088. Having 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.
In 2014 we were called by Mr Jamie Carter who, having purchased a studio flat in Gilwern in May 2000. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Gilwern with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed in 2077. Considering the 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.