As the the remaining lease term of a Treuddyn residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Treuddyn will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Treuddyn with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Treuddyn,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Treuddyn valuers.
Kian owned a conversion apartment in Treuddyn being marketed with a lease of a little over 61 years outstanding. Kian informally approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms 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 due on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Last Summer we were called by Mr K Phillips , who acquired a studio flat in Treuddyn in July 2003. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Treuddyn with 100 year plus lease were valued about £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease finished on 8 February 2089. Considering the 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.
Mr J Campbell was assigned a lease of a basement apartment in Treuddyn in February 2002. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical homes in Treuddyn with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2100. Given that there were 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.