When it comes to domestic leasehold property in Tregaron, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Tregaron with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Tregaron with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Tregaron can be a difficult process. We recommend you procure guidance from a lawyer 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 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.
Following lengthy negotiations with the landlord of her studio flat in Tregaron, Rosie initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in August 2007. The landlord’s charges were kept to an absolute minimum.
Last Winter we were called by Mrs U Cox , who bought a recently refurbished flat in Tregaron in October 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Tregaron with a long lease were worth £275,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2103. Having 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Last Summer we were e-mailed by Dr I Martínez , who acquired a recently refurbished flat in Tregaron in October 2012. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Tregaron with a long lease were in the region of £183,600. The average amount of ground rent was £65 invoiced per annum. The lease end date was on 3 September 2083. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.