As the length of the unexpired term of a Gwernaffield residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Gwernaffield will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify 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.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
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Accord Mortgages | 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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
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 |
Using our service will provide you enhanced control over the value of your Gwernaffield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a 2 bedroom flat in Gwernaffield on the market with a lease of a few days over 72 years unexpired. Ryan informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. U Carter who, having was assigned a lease of a one bedroom flat in Gwernaffield in March 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Gwernaffield with an extended lease were valued about £267,600. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2092. Taking into account 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including costs.
Last Winter we were e-mailed by Mr and Mrs. C Smith , who was assigned a lease of a first floor apartment in Gwernaffield in August 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Gwernaffield with 100 year plus lease were valued around £201,200. The average amount of ground rent was £55 collected quarterly. The lease ended on 26 April 2081. Considering the 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.