The market value of a leasehold property in Gwernaffield is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Gwernaffield qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Gwernaffield with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Gwernaffield 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.
Following lengthy negotiations with the landlord of her first floor apartment in Gwernaffield, Naomi commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was concluded in November 2009. The freeholder’s costs were negotiated to less than 650 GBP.
Last Autumn we were phoned by Mr Lucas François , who bought a ground floor flat in Gwernaffield in January 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Gwernaffield with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease finished in 2075. Considering the 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.
In 2012 we were called by Dr P Walker who, having was assigned a lease of a newly refurbished apartment in Gwernaffield in August 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical homes in Gwernaffield with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 invoiced yearly. The lease ran out in 2095. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.