Tregaron leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Tregaron residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Tregaron you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Tregaron leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Tregaron with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Tregaron can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Tregaron lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Stanley, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Tregaron. Having purchased his flat 18 years ago, the length of the lease was of little importance. Luckily, he realised he needed to take steps soon on Extending the lease. Stanley arranged for a lease extension at the eleventh hour last September. Stanley and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £875.
Mr and Mrs. R Bernard was assigned a lease of a one bedroom apartment in Tregaron in February 2009. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparable properties in Tregaron with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed in 2091. Having 65 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Mrs H Fournier completed a studio apartment in Tregaron in April 1996. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable residencies in Tregaron with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 25 July 2102. Taking into account 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.