Treuddyn leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Treuddyn will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Treuddyn with in excess of 100 years unexpired on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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 |
The conveyancers that we work with procure Treuddyn 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.
In recent months Jayden, came perilously near to the eighty-year threshold with the lease on his leasehold apartment in Treuddyn. Having purchased his property two decades ago, the lease term was of no importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Jayden extended the lease at the eleventh hour last April. Jayden and the landlord eventually settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £900.
Last Spring we were contacted by Dr Georgina Michel , who completed a one bedroom apartment in Treuddyn in August 2003. We are asked if we could estimate the price would be to extend the lease by an additional years. Similar premises in Treuddyn with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 billed monthly. The lease terminated in 2088. Taking into account 62 years outstanding we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
Ms Jodie Bertrand completed a garden apartment in Treuddyn in July 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Treuddyn with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out in 2099. Taking into account 73 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.