The re-sale value of a leasehold property in Gwernaffield depends on how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded prior to the 80 year mark. Current legislation entitles Gwernaffield qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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.
Off the back of unsuccessful discussions with the landlord of her studio flat in Gwernaffield, Naomi started the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in April 2008. The freeholder’s fees were kept to an absolute minimum.
Dr T Thompson bought a one bedroom apartment in Gwernaffield in January 1995. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Gwernaffield with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 billed quarterly. The lease terminated in 2077. Given that there were 51 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
Last Autumn we were e-mailed by Mr Rory Martinez , who was assigned a lease of a garden apartment in Gwernaffield in February 2010. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Gwernaffield with an extended lease were worth £285,000. The average amount of ground rent was £45 collected quarterly. The lease concluded in 2097. Having 71 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.