Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Tredegar. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Tredegar have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before putting off your Tredegar lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
Leasehold premises in Tredegar with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Tredegar,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tredegar valuers.
Last Spring Evan, started to get near to the 80-year mark with the lease on his purpose- built apartment in Tredegar. Having bought his home twenty years ago, the length of the lease was of minimal interest. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Evan was able to extend his lease just under the wire last August. Evan and the freeholder via the management company ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £1,000.
Last August we were phoned by Mr and Mrs. R Gray , who acquired a one bedroom flat in Tredegar in November 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Tredegar with an extended lease were valued around £250,400. The average ground rent payable was £65 collected yearly. The lease lapsed in 2089. Given that there were 64 years remaining we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus fees.
Last month we were approach by Mr and Mrs. B Scott , who acquired a one bedroom flat in Tredegar in August 1999. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Tredegar with a long lease were valued about £189,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out in 2078. Given that there were 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.