Gwernaffield leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Gwernaffield will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service gives you increased control over the value of your Gwernaffield leasehold, as your property will be more valuable and saleable in respect of 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.
Following lengthy discussions with the landlord of her one bedroom apartment in Gwernaffield, Rachel started the lease extension process as the eighty year deadline was fast coming. The lease extension completed in February 2008. The freeholder’s charges were negotiated to about five hundred GBP.
Mrs Anna Williams owned a purpose-built flat in Gwernaffield in August 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Gwernaffield with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed in 2100. Given that there were 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
In 2013 we were e-mailed by Mr and Mrs. N Morel who, having moved into a studio apartment in Gwernaffield in September 2000. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Gwernaffield with a long lease were in the region of £243,000. The average amount of ground rent was £65 billed yearly. The lease terminated on 20 February 2089. Considering the 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.