On the balance of probabilities where you own a flat in Gurnard you actually own a long leasehold interest over your property
Leasehold premises in Gurnard with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 Gurnard can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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 Gurnard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her basement flat in Gurnard, Katie initiated the lease extension process as the 80 year deadline was swiftly advancing. The transaction was finalised in April 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. S Murphy , who took over the lease of a ground floor flat in Gurnard in June 1995. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical residencies in Gurnard with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 23 May 2096. Taking into account 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2009 we were called by Dr F Girard who, having was assigned a lease of a basement apartment in Gurnard in November 2006. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Gurnard with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease expiry date was in 2085. Taking into account 60 years left we calculated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 plus expenses.