As the the remaining lease term of a Gwernaffield residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Gwernaffield will qualify for this right; however a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In certain 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 Gwernaffield with in excess of one hundred years outstanding 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander |
Retaining our service will provide you better control over the value of your Gwernaffield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum was the the leasehold proprietor of a 2 bedroom flat in Gwernaffield on the market with a lease of fraction over fifty eight years remaining. Callum 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 was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last March we were e-mailed by Mr Daniel Ali , who was assigned a lease of a one bedroom flat in Gwernaffield in October 2003. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar flats in Gwernaffield with an extended lease were in the region of £275,000. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2009 we were called by Ms V Howard who, having took over the lease of a ground floor flat in Gwernaffield in October 2002. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar homes in Gwernaffield with 100 year plus lease were worth £208,600. The average ground rent payable was £60 invoiced quarterly. The lease expiry date was on 3 August 2083. Considering the 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.