Unfortunately that a Treuddyn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Treuddyn property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Treuddyn will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the freeholder of her studio flat in Treuddyn, Elizabeth commenced the lease extension process as the eighty year mark was fast coming. The transaction was concluded in September 2013. The landlord’s charges were restricted to less than four hundred pounds.
Mrs D Young completed a studio apartment in Treuddyn in June 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Treuddyn with an extended lease were worth £280,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 19 March 2104. Taking into account 78 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
In 2011 we were contacted by Mr C Lefèvre who, having acquired a garden flat in Treuddyn in March 1998. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Treuddyn with an extended lease were valued around £186,000. The average ground rent payable was £65 collected annually. The lease termination date was in 2084. Given that there were 58 years left we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of fees.