Tregaron leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Tregaron will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The lawyers that we work with undertake 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.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Tregaron, Elizabeth initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension completed in April 2014. The landlord’s fees were kept to an absolute minimum.
Dr Nathan Cooper moved into a one bedroom flat in Tregaron in June 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Tregaron with an extended lease were valued about £237,600. The mid-range ground rent payable was £45 collected yearly. The lease lapsed on 8 January 2093. Considering the 67 years left we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.
Mrs G Phillips completed a basement flat in Tregaron in August 2006. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical homes in Tregaron with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out on 25 March 2104. Taking into account 78 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.