As the the remaining lease term of a Tregaron residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Tregaron will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Tregaron with in excess of 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
Retaining our service will provide you increased control over the value of your Tregaron leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eli was the the leasehold owner of a studio flat in Tregaron being sold with a lease of a few days over 59 years remaining. Eli on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to exercise his statutory right. Eli procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Dr Arthur Edwards owned a purpose-built flat in Tregaron in September 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative flats in Tregaron with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished on 20 January 2096. Taking into account 71 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Mr Jacob Bertrand acquired a first floor apartment in Tregaron in August 1997. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar flats in Tregaron with an extended lease were worth £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2076. Taking into account 51 years unexpired we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus professional charges.