On the balance of probabilities where you own a flat in Treuddyn you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Treuddyn,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Treuddyn valuers.
18 months ago Ibrahim, came seriously near to the eighty-year threshold with the lease on his ground floor flat in Treuddyn. In buying his flat two decades ago, the lease term was of no relevance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Ibrahim was able to extend his lease at the eleventh hour last July. Ibrahim and the landlord subsequently agreed on a premium of £5,000 . If he had missed the deadline, the premium would have escalated by at least £1,100.
Dr U Ward acquired a first floor flat in Treuddyn in June 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Treuddyn with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease terminated in 2077. Taking into account 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 plus legals.
Mr and Mrs. S Vincent owned a basement flat in Treuddyn in June 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Treuddyn with a long lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease expiry date was on 28 April 2088. Taking into account 62 years remaining we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.