When it comes to long leasehold property in Treuddyn, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Anyone in Treuddyn with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years left, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Treuddyn with more than one hundred years left 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 freehold unless savings on ground rent and estate charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
| 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 undertake 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.
Two years ago Henry, came precariously close to the 80-year threshold with the lease on his purpose- built apartment in Treuddyn. Having purchased his home 18 years ago, the unexpired term was of no significance. Luckily, he became aware that he needed to take action soon on a lease extension. Henry arranged for a lease extension at the eleventh hour last July. Henry and the landlord subsequently agreed on the final figure of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,050.
In 2012 we were phoned by Mr Theo Davies who, having took over the lease of a recently refurbished apartment in Treuddyn in September 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative flats in Treuddyn with a long lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease terminated on 14 September 2076. Taking into account 50 years outstanding we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.
Last Summer we were e-mailed by Mr and Mrs. E Michel , who bought a garden apartment in Treuddyn in May 1997. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Treuddyn with a long lease were valued around £203,200. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 4 November 2087. Given that there were 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including professional charges.