Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Gorseinon. Inevitably, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Gorseinon have the legal entitlement to extend the lease for a further 90 years under statute. Please give careful deliberation before putting off your Gorseinon lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Gorseinon with more than 100 years left on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| 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. |
Engaging our service gives you better control over the value of your Gorseinon leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Gorseinon, Ashleigh commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in March 2005. The landlord’s charges were negotiated to below 450 pounds.
Last June we were contacted by Mr and Mrs. D Sharif , who acquired a one bedroom flat in Gorseinon in July 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative residencies in Gorseinon with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 collected quarterly. The lease lapsed on 5 February 2095. Having 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last Winter we were phoned by Mr and Mrs. C Michel , who owned a purpose-built apartment in Gorseinon in September 1996. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Gorseinon with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease termination date was on 10 April 2084. Taking into account 58 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.