Gurnard leases on residential deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Gurnard will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Gurnard with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Gurnard,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gurnard valuers.
After lengthy discussions with the freeholder of her garden flat in Gurnard, Rosie started the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in August 2013. The landlord’s costs were kept to an absolute minimum.
In 2010 we were approached by Dr Y Díaz who, having was assigned a lease of a one bedroom apartment in Gurnard in January 2007. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Gurnard with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced per annum. The lease came to a finish in 2106. Taking into account 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last Spring we were phoned by Mr and Mrs. N Patel , who moved into a one bedroom apartment in Gurnard in February 2005. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Gurnard with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded on 17 January 2095. Having 69 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.