The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Treuddyn can extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Treuddyn lease extension. Putting off the costs now simply increases the premium you will eventually have to pay for a lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 30 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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.
Last October Isaac, started to get near to the 80-year threshold with the lease on his garden flat in Treuddyn. In buying his flat two decades ago, the unexpired term was of minimal importance. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Isaac was able to extend his lease just ahead of time last June. Isaac and the landlord subsequently agreed on a premium of £5,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,125.
Mr and Mrs. A Scott acquired a one bedroom apartment in Treuddyn in September 2008. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable premises in Treuddyn with a long lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease concluded on 6 November 2079. Considering the 53 years outstanding we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
Mr B Girard took over the lease of a studio apartment in Treuddyn in June 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Treuddyn with an extended lease were in the region of £220,400. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2090. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of legals.