The only way is down when it comes to Gwernaffield lease terms. Gwernaffield properties that have a lease term lower than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will increase.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Half a year ago Elijah, came critically near to the eighty-year mark with the lease on his purpose- built flat in Gwernaffield. In buying his property twenty years ago, the lease term was of little bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Elijah was able to extend his lease just under the wire in June. Elijah and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had fallen to less than 80 years, the amount would have gone up by at least £950.
In 2013 we were e-mailed by Mr and Mrs. T Bernard who, having took over the lease of a garden flat in Gwernaffield in February 2010. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable properties in Gwernaffield with a long lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired in 2076. Having 53 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
Last year we were contacted by Mr and Mrs. O Leroy , who acquired a studio flat in Gwernaffield in September 2003. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Gwernaffield with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 25 February 2096. Taking into account 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.