On the balance of probabilities if you own a flat in Treuddyn you actually own a long leasehold interest over your property
Leasehold residencies in Treuddyn with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 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 conveyancer we work with provide it.
18 months ago Sam, came seriously close to the 80-year threshold with the lease on his two bedroom flat in Treuddyn. In buying his flat 18 years previously, the length of the lease was of little relevance. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Sam arranged for a lease extension just in the nick of time in June. Sam and the freeholder ultimately agreed on sum of £6,000 . If the lease had dropped lower than 80 years, the premium would have become more exhorbitant by a minimum £950.
In 2012 we were called by Mr and Mrs. N Young who, having owned a basement flat in Treuddyn in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Treuddyn with 100 year plus lease were worth £255,000. The average ground rent payable was £50 collected annually. The lease ended on 14 November 2096. Having 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last July we were called by Dr D Morgan , who was assigned a lease of a purpose-built apartment in Treuddyn in June 2012. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Treuddyn with a long lease were valued around £254,200. The average ground rent payable was £60 collected per annum. The lease finished on 5 January 2076. Having 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.