Tredegar leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher amount will be due. Flat owners in Tredegar will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Tredegar with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your Tredegar leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Matthew, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Tredegar. Having purchased his property 18 years previously, the lease term was of no bearing. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Matthew arranged for a lease extension at the eleventh hour in August. Matthew and the freeholder ultimately agreed on an amount of £5,000 . If the lease had descended below 80 years, the figure would have gone up by at least £1,100.
Mr Jamie Nguyen acquired a one bedroom apartment in Tredegar in June 2001. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative flats in Tredegar with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded in 2083. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of legals.
Mr and Mrs. J Khan was assigned a lease of a one bedroom flat in Tredegar in February 2005. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical homes in Tredegar with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 17 May 2103. Taking into account 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.