Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Gresford. Clearly, the length of lease left shortens over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Gresford have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give due deliberation before putting off your Gresford lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
Lease extensions in Gresford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 dealing with Gresford 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 Luca, came precariously close to the eighty-year mark with the lease on his one bedroom apartment in Gresford. Having bought his home twenty years ago, the length of the lease was of little significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Luca was able to extend his lease just under the wire in March. Luca and the freeholder ultimately settled on an amount of £5,500 . If the lease had dipped lower than eighty years, the premium would have become more costly by at least £1,075.
Dr Katherine Hill owned a purpose-built apartment in Gresford in July 2002. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative homes in Gresford with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease end date was in 2098. Given that there were 72 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
In 2009 we were contacted by Ms I Roberts who, having bought a studio flat in Gresford in September 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar residencies in Gresford with a long lease were valued about £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease concluded on 24 September 2087. Having 61 years outstanding we approximated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 plus legals.