The value of Gwersyllt leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Gwersyllt with more than one hundred years left on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Gwersyllt can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Gwersyllt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her purpose-built flat in Gwersyllt, Bethany initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was concluded in May 2005. The landlord’s costs were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. W Taylor , who bought a one bedroom flat in Gwersyllt in February 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar flats in Gwersyllt with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease came to a finish on 1 March 2093. Taking into account 68 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were called by Ms Jennifer Bell who, having owned a first floor flat in Gwersyllt in August 2001. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Gwersyllt with a long lease were worth £285,000. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 11 May 2104. Taking into account 79 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.