The only way is down when it comes to Gwernaffield lease terms. Gwernaffield leaseholds that have a lease term lower than eighty years will reduce in value at a rapid rate, and the cost to extend your lease will go up.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Gwernaffield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gwernaffield valuers.
After unsuccessful correspondence with the freeholder of her studio flat in Gwernaffield, Jodie initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in October 2007. The landlord’s charges were restricted to slightly above 500 pounds.
In 2011 we were phoned by Mrs H Rivera who, having was assigned a lease of a studio apartment in Gwernaffield in January 2000. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable properties in Gwernaffield with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected annually. The lease expired in 2103. Taking into account 79 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Last Christmas we were approach by Mr and Mrs. M Young , who took over the lease of a one bedroom flat in Gwernaffield in July 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Gwernaffield with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease termination date was on 8 February 2092. Given that there were 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.