Gowerton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Gowerton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Gowerton you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Gowerton with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gowerton can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge 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 year Harrison, started to get close to the 80-year mark with the lease on his leasehold flat in Gowerton. Having bought his flat two decades ago, the lease term was of little interest. Luckily, he realised he needed to take steps soon on Extending the lease. Harrison was able to extend his lease just under the wire in July. Harrison and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If the lease had gone to less than 80 years, the price would have become more costly by at least £975.
Last month we were contacted by Mr and Mrs. D Wilson , who bought a studio apartment in Gowerton in August 1996. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable premises in Gowerton with a long lease were worth £200,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 14 November 2103. Having 77 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Ms A Sánchez bought a garden apartment in Gowerton in April 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Gowerton with an extended lease were worth £265,200. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2092. Having 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including professional charges.