Gurnard leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Gurnard will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Gurnard can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
Last year Aaron, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Gurnard. Having purchased his home 19 years previously, the length of the lease was of little interest. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Aaron extended the lease just in the nick of time in May. Aaron and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If he not met the deadline, the amount would have gone up by at least £1,075.
Ms Natasha Ali acquired a newly refurbished flat in Gurnard in May 2000. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Gurnard with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 8 April 2103. Given that there were 78 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
In 2009 we were called by Dr Finley Wood who, having took over the lease of a basement apartment in Gurnard in June 2010. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Gurnard with an extended lease were valued around £267,600. The average amount of ground rent was £65 billed per annum. The lease expired on 27 April 2092. Having 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.