Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Gwernaffield. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Gwernaffield have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful attention before putting off your Gwernaffield lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Gwernaffield with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Gwernaffield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Blake, started to get close to the eighty-year mark with the lease on his studio apartment in Gwernaffield. Having bought his home two decades ago, the lease term was of minimal concern. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Blake arranged for a lease extension just under the wire last March. Blake and the landlord in the end settled on an amount of £5,500 . If the lease had gone below eighty years, the price would have become more costly by at least £875.
Last year we were called by Mrs I Mitchell , who completed a one bedroom apartment in Gwernaffield in April 2010. The question was if we could estimate the premium could be for a 90 year lease extension. Similar properties in Gwernaffield with an extended lease were valued about £218,400. The mid-range ground rent payable was £60 collected yearly. The lease expiry date was in 2085. Having 59 years remaining we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus expenses.
Mr and Mrs. O Ramírez moved into a purpose-built flat in Gwernaffield in June 2003. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Comparable flats in Gwernaffield with a long lease were worth £205,000. The average amount of ground rent was £50 collected yearly. The lease expiry date was on 4 August 2105. Having 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.