Treuddyn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Treuddyn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Treuddyn you really ought to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 are not acceptable. 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; |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Treuddyn leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Oliver, came critically near to the eighty-year threshold with the lease on his purpose- built apartment in Treuddyn. In buying his property two decades ago, the unexpired term was of minimal concern. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Oliver extended the lease at the eleventh hour in August. Oliver and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the sum would have increased by a minimum £950.
In 2011 we were approached by Mr Leo Murphy who, having completed a basement apartment in Treuddyn in October 2008. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Similar homes in Treuddyn with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected annually. The lease expired on 17 June 2092. Taking into account 66 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last year we were e-mailed by Dr J Clark , who acquired a purpose-built flat in Treuddyn in March 2000. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative premises in Treuddyn with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed per annum. The lease finished on 8 July 2103. Considering the 77 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.