On the balance of probabilities where you own a flat in Tregaron you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The lawyers that we work with handle Tregaron 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.
Ali owned a high value apartment in Tregaron being sold with a lease of fraction over sixty years remaining. Ali on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were phoned by Dr Harrison Parker who, having completed a studio flat in Tregaron in August 2004. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Tregaron with a long lease were worth £186,000. The mid-range amount of ground rent was £65 invoiced annually. The lease finished in 2083. Given that there were 58 years outstanding we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 not including professional charges.
Last March we were phoned by Mr and Mrs. T Baker , who completed a studio apartment in Tregaron in February 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Tregaron with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended on 1 April 2094. Given that there were 69 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.