Gwernaffield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Gwernaffield tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Gwernaffield you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Gwernaffield can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Gwernaffield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her two bedroom flat in Gwernaffield, Tia started the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in August 2007. The landlord’s fees were negotiated to about five hundred GBP.
In 2012 we were approached by Dr P Garcia who, having was assigned a lease of a ground floor apartment in Gwernaffield in August 1998. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar properties in Gwernaffield with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected monthly. The lease terminated in 2098. Considering the 73 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
In 2011 we were called by Mr and Mrs. K Díaz who, having bought a ground floor apartment in Gwernaffield in September 2011. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Gwernaffield with 100 year plus lease were valued about £235,600. The average ground rent payable was £60 billed quarterly. The lease end date was on 22 October 2087. Having 62 years unexpired we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.