Gowerton residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 professional help from a conveyancing solicitor 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 Finn, came very close to the eighty-year mark with the lease on his leasehold flat in Gowerton. In buying his property two decades ago, the unexpired term was of no concern. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Finn arranged for a lease extension just ahead of time last April. Finn and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,050.
In 2011 we were called by Mr K Laurent who, having completed a one bedroom flat in Gowerton in January 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Gowerton with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed annually. The lease elapsed in 2078. Given that there were 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
Mrs L Lambert owned a one bedroom apartment in Gowerton in February 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Gowerton with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease elapsed on 18 November 2098. Having 73 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.