With a long leasehold premises in Gurnard, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Gurnard with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Gurnard with more than 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 Gurnard can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 Gurnard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Oscar, came critically close to the 80-year mark with the lease on his studio apartment in Gurnard. Having purchased his home 19 years ago, the length of the lease was of little concern. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Oscar extended the lease just ahead of time in March. Oscar and the freeholder via the management company subsequently settled on sum of £6,000 . If the lease had fallen lower than 80 years, the sum would have increased by at least £950.
Last Summer we were e-mailed by Mr and Mrs. J Leroy , who acquired a basement apartment in Gurnard in February 1996. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Gurnard with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 billed per annum. The lease finished in 2083. Considering the 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.
Last Summer we were approach by Mr and Mrs. G Morris , who owned a purpose-built apartment in Gurnard in October 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical premises in Gurnard with an extended lease were valued about £200,000. The average ground rent payable was £50 billed yearly. The lease ended in 2103. Considering the 77 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.