There is no doubt about it a leasehold flat or house in Gwaelod Y Garth is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Gwaelod Y Garth will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Gwaelod Y Garth with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Gwaelod Y Garth can be a difficult process. We recommend you secure 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 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.
Following protracted negotiations with the landlord of her purpose-built apartment in Gwaelod Y Garth, Lucy started the lease extension process as the 80 year deadline was quickly approaching. The legal work was finalised in September 2015. The freeholder’s charges were restricted to approximately 700 GBP.
In 2011 we were called by Mr and Mrs. C Pérez who, having took over the lease of a ground floor flat in Gwaelod Y Garth in April 2004. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical premises in Gwaelod Y Garth with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 24 May 2090. Taking into account 64 years unexpired we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.
Last Christmas we were approach by Mrs H Martinez , who bought a one bedroom flat in Gwaelod Y Garth in June 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Gwaelod Y Garth with a long lease were valued around £189,000. The average ground rent payable was £55 collected monthly. The lease came to a finish on 12 February 2079. Given that there were 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.