The value of Treuddyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same 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 |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Treuddyn,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Treuddyn valuers.
Trailing protracted negotiations with the freeholder of her first floor flat in Treuddyn, Amber started the lease extension process as the 80 year deadline was quickly advancing. The legal work was finalised in May 2007. The freeholder’s fees were negotiated to approximately 650 pounds.
In 2011 we were called by Mr R Cooper who, having bought a garden flat in Treuddyn in August 2001. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparative homes in Treuddyn with an extended lease were in the region of £176,200. The average amount of ground rent was £65 collected monthly. The lease ended on 8 January 2081. Taking into account 56 years left we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including costs.
Last Spring we were phoned by Mr C Cox , who purchased a purpose-built apartment in Treuddyn in June 1997. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative properties in Treuddyn with 100 year plus lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish in 2092. Taking into account 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus professional charges.