There is no doubt about it a leasehold property in Tredegar is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Tredegar will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a studio flat in Tredegar being marketed with a lease of just over 61 years unexpired. Teddy informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. S Campbell was assigned a lease of a one bedroom apartment in Tredegar in October 2012. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Tredegar with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 collected per annum. The lease ran out on 24 January 2085. Given that there were 60 years remaining we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus expenses.
In 2010 we were called by Mr and Mrs. W Bailey who, having owned a recently refurbished apartment in Tredegar in July 2011. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical flats in Tredegar with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 12 April 2105. Given that there were 80 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.