Tredegar leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Tredegar will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Tredegar with over 100 years left on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Tredegar,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tredegar valuers.
Riley owned a 2 bedroom apartment in Tredegar being sold with a lease of a little over 59 years outstanding. Riley on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were approached by Dr P Rose who, having took over the lease of a ground floor flat in Tredegar in June 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative premises in Tredegar with 100 year plus lease were in the region of £181,600. The average amount of ground rent was £55 billed annually. The lease came to a finish on 16 April 2077. Taking into account 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
Mr and Mrs. E Cox completed a studio apartment in Tredegar in August 2001. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical properties in Tredegar with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease termination date was on 24 September 2097. Taking into account 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.