The re-sale value of a leasehold property in Gorseinon is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded well before the eighty year cut off point. Leasehold Reform legislation enables Gorseinon qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Gorseinon with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Gorseinon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gorseinon valuers.
Adam owned a conversion apartment in Gorseinon on the market with a lease of fraction over 61 years remaining. Adam informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Dr Stephanie Norbert who, having completed a garden apartment in Gorseinon in August 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Gorseinon with an extended lease were in the region of £223,400. The average ground rent payable was £60 billed quarterly. The lease terminated on 16 November 2084. Having 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including expenses.
In 2013 we were approached by Mr and Mrs. N Baker who, having was assigned a lease of a basement flat in Gorseinon in February 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Gorseinon with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 18 February 2104. Given that there were 79 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.