Gwernaffield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Gwernaffield tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Gwernaffield you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Gwernaffield leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold properties in Gwernaffield with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with handle Gwernaffield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jonathan was the the leasehold owner of a high value apartment in Gwernaffield being marketed with a lease of a few days over 59 years unexpired. Jonathan on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. E Hill who, having completed a ground floor flat in Gwernaffield in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Gwernaffield with a long lease were valued about £250,400. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 5 April 2090. Given that there were 64 years unexpired we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
In 2009 we were contacted by Dr Tommy Williams who, having acquired a first floor flat in Gwernaffield in August 1997. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar residencies in Gwernaffield with 100 year plus lease were worth £184,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2079. Considering the 53 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.