The re-sale value of a leasehold property in Gowerton is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised prior to the 80 year threshold. Current legislation enables Gowerton qualifying lessees to obtain a lease extension of ninety 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 purchase of the lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Gowerton can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Gowerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Milo, started to get near to the eighty-year threshold with the lease on his basement flat in Gowerton. Having bought his flat two decades ago, the length of the lease was of minimal interest. Luckily, he recognised he needed to take steps soon on Extending the lease. Milo was able to extend his lease just in the nick of time in August. Milo and the freeholder subsequently agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,125.
Last Winter we were called by Dr Jude André , who took over the lease of a recently refurbished apartment in Gowerton in October 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Gowerton with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated in 2101. Having 75 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Last Autumn we were approach by Mrs Charlotte Garcia , who was assigned a lease of a garden flat in Gowerton in April 2005. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable flats in Gowerton with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish on 21 August 2090. Considering the 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.