Gwersyllt leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Gwersyllt will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Gwersyllt,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Gwersyllt valuers.
Sam was the the leasehold owner of a conversion apartment in Gwersyllt being marketed with a lease of fraction over 72 years left. Sam on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree 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 payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Dr D Kelly , who completed a garden apartment in Gwersyllt in April 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Gwersyllt with a long lease were in the region of £290,000. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2105. Given that there were 80 years unexpired we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.
Last Winter we were contacted by Mr and Mrs. O David , who was assigned a lease of a basement flat in Gwersyllt in February 1999. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Gwersyllt with a long lease were valued around £200,800. The mid-range ground rent payable was £65 billed per annum. The lease concluded in 2085. Having 60 years remaining we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus fees.