With a long leasehold premises in Treuddyn, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Treuddyn with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the relevant statute the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Treuddyn with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Henry owned a high value apartment in Treuddyn on the market with a lease of fraction over sixty years remaining. Henry on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last September we were contacted by Mr G Howard , who completed a garden flat in Treuddyn in September 2001. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable residencies in Treuddyn with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed monthly. The lease end date was in 2095. Considering the 70 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
In 2013 we were e-mailed by Mr and Mrs. F Sánchez who, having owned a first floor flat in Treuddyn in March 2009. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical properties in Treuddyn with a long lease were valued about £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease finished in 2075. Given that there were 50 years remaining we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus expenses.