Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Gowerton. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Gowerton have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Gowerton lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Gowerton with over 100 years outstanding on the lease are sometimes 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 merit 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Gowerton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her ground floor apartment in Gowerton, Lydia commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension completed in November 2015. The landlord’s charges were restricted to under five hundred GBP.
Last Winter we were contacted by Mr and Mrs. M François , who purchased a first floor apartment in Gowerton in November 2012. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Gowerton with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2093. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr G Hernández was assigned a lease of a first floor flat in Gowerton in September 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Gowerton with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 billed per annum. The lease ended in 2082. Having 57 years as a residual term we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.