The market value of Gurnard leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
Leasehold residencies in Gurnard with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Gurnard,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Gurnard valuers.
Last year Charlie, came very near to the 80-year mark with the lease on his ground floor flat in Gurnard. Having purchased his flat two decades ago, the length of the lease was of no concern. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Charlie arranged for a lease extension just under the wire last March. Charlie and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the amount would have increased by a minimum £925.
Last year we were phoned by Mr and Mrs. I Thompson , who moved into a first floor flat in Gurnard in January 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Gurnard with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed every twelve months. The lease expired in 2099. Given that there were 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Mr and Mrs. U Lewis owned a basement flat in Gurnard in June 2001. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical properties in Gurnard with a long lease were in the region of £235,600. The average amount of ground rent was £60 billed per annum. The lease elapsed in 2088. Given that there were 62 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.