Unfortunately that a Gurnard residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Gurnard property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Gurnard will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Gurnard,the lease extension experts 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.
Last year Callum, started to get close to the eighty-year threshold with the lease on his first floor apartment in Gurnard. Having bought his home two decades ago, the length of the lease was of no concern. Fortunately, he noticed he needed to take action soon on a lease extension. Callum was able to extend his lease just in the nick of time in June. Callum and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had dipped to less than 80 years, the price would have become more costly by at least £975.
Last Winter we were e-mailed by Dr Callum White , who was assigned a lease of a ground floor apartment in Gurnard in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable residencies in Gurnard with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed in 2090. Given that there were 64 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including legals.
In 2010 we were called by Mr and Mrs. B Rogers who, having purchased a studio flat in Gurnard in November 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Gurnard with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated in 2079. Considering the 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.