The market value of a leasehold property in Gurnard depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised well before the eighty year cut off point. Current legislation entitles Gurnard qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Gurnard leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted negotiations with the freeholder of her basement flat in Gurnard, Caitlin initiated the lease extension process as the 80 year mark was swiftly coming. The transaction was finalised in September 2008. The landlord’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Dr K André who, having purchased a garden flat in Gurnard in May 2009. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Gurnard with a long lease were in the region of £218,400. The mid-range ground rent payable was £60 billed annually. The lease concluded on 7 January 2084. Taking into account 59 years remaining we approximated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
Last Spring we were e-mailed by Ms H Murphy , who acquired a ground floor apartment in Gurnard in November 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Gurnard with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2104. Taking into account 79 years unexpired we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including fees.