The value of Gwaelod Y Garth 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 escalate substantially once the remaining term is below than eighty years
Leasehold residencies in Gwaelod Y Garth with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Gwaelod Y Garth can be a difficult process. We recommend you secure guidance 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 dealing with Gwaelod Y Garth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a conversion apartment in Gwaelod Y Garth being sold with a lease of just over fifty eight years remaining. Alexander on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Summer we were approach by Mr and Mrs. R Harris , who purchased a newly refurbished apartment in Gwaelod Y Garth in November 2009. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative flats in Gwaelod Y Garth with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 14 October 2078. Given that there were 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.
Last Spring we were called by Mr Riley François , who moved into a first floor apartment in Gwaelod Y Garth in March 2000. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Gwaelod Y Garth with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease concluded in 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of costs.