When it comes to long leasehold premises in Gwersyllt, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Gwersyllt with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has under 80 years remaining, under the current legislation the landlord can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Gwersyllt with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
| 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 conveyancing solicitors that we work with handle Gwersyllt 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 lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the freeholder of her two bedroom apartment in Gwersyllt, Isabel commenced the lease extension process as the eighty year deadline was rapidly advancing. The legal work completed in May 2011. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. Y Mason who, having purchased a garden flat in Gwersyllt in April 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Gwersyllt with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2089. Taking into account 63 years outstanding we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.
Mr and Mrs. A Robinson took over the lease of a purpose-built flat in Gwersyllt in September 2007. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Gwersyllt with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease finished on 13 November 2100. Having 74 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.