There is no doubt about it a leasehold property in Tregaron is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Tregaron will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Tregaron with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Tregaron can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Tregaron lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey owned a high value apartment in Tregaron being marketed with a lease of just over 59 years unexpired. Harvey informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. I Harris took over the lease of a studio apartment in Tregaron in June 2012. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Tregaron with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed in 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.
Mr and Mrs. J Gómez acquired a one bedroom apartment in Tregaron in April 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Tregaron with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected yearly. The lease elapsed in 2091. Considering the 65 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.