Gowerton leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Gowerton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Gowerton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Gowerton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Eliot, started to get close to the 80-year threshold with the lease on his first floor apartment in Gowerton. In buying his flat two decades ago, the lease term was of little relevance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Eliot extended the lease just under the wire in September. Eliot and the freeholder subsequently agreed on a premium of £5,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,150.
Last Winter we were approach by Mr and Mrs. G Murphy , who took over the lease of a purpose-built apartment in Gowerton in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Gowerton with a long lease were valued about £280,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated in 2096. Taking into account 70 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
In 2014 we were contacted by Mrs L Nelson who, having owned a one bedroom apartment in Gowerton in June 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Gowerton with a long lease were valued around £223,400. The average amount of ground rent was £60 collected monthly. The lease ran out in 2085. Considering the 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus fees.