Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Treuddyn. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Treuddyn have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful deliberation before delaying your Treuddyn lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
Leasehold premises in Treuddyn with more than 100 years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
Hunter owned a conversion apartment in Treuddyn being marketed with a lease of just over 59 years outstanding. Hunter informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. G Norbert completed a basement apartment in Treuddyn in August 2001. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative flats in Treuddyn with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced yearly. The lease expired on 28 August 2083. Having 57 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
Last Winter we were called by Mr and Mrs. N Campbell , who moved into a one bedroom flat in Treuddyn in March 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Treuddyn with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 13 August 2094. Considering the 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.