The only way is down when it comes to Gwernaffield lease terms. Gwernaffield leaseholds that have a lease term fewer than 80 years will de-escalate in market price even faster, and the cost to extend your lease will increase.
Leasehold premises in Gwernaffield with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Trailing protracted negotiations with the freeholder of her purpose-built flat in Gwernaffield, Jade initiated the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in June 2012. The freeholder’s fees were negotiated to a tad over six hundred GBP.
In 2013 we were called by Mr and Mrs. S Young who, having purchased a newly refurbished flat in Gwernaffield in February 2010. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar homes in Gwernaffield with a long lease were worth £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 26 October 2085. Taking into account 60 years left we calculated the premium to the freeholder to extend the lease to be between £25,700 and £29,600 plus fees.
In 2009 we were approached by Dr Eleanor Morel who, having took over the lease of a studio apartment in Gwernaffield in February 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Gwernaffield with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired in 2105. Taking into account 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.