The market value of Tregaron leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Tregaron with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors 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.
Off the back of lengthy discussions with the landlord of her first floor flat in Tregaron, Chloe commenced the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension was concluded in April 2005. The landlord’s charges were restricted to about 650 pounds.
Mr and Mrs. R López completed a one bedroom apartment in Tregaron in March 2007. The question was if we could approximate the premium would be for a 90 year lease extension. Similar properties in Tregaron with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2099. Given that there were 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Last month we were phoned by Dr Hollie Bertrand , who acquired a studio apartment in Tregaron in March 2007. We are asked if we could estimate the price would be for a 90 year lease extension. Identical properties in Tregaron with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 billed per annum. The lease expired on 5 September 2079. Taking into account 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including professional charges.