The closer a domestic lease in Tregaron nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Tregaron will qualify for this right; however a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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. |
Lease extensions in Tregaron can be a difficult process. We recommend you secure professional help from a conveyancer 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 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.
Trailing lengthy negotiations with the freeholder of her first floor apartment in Tregaron, Bethany initiated the lease extension process just as the lease was approaching the crucial eighty-year mark. The lease extension was finalised in July 2012. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were approached by Mr and Mrs. T Bennett who, having purchased a one bedroom flat in Tregaron in June 1995. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar properties in Tregaron with a long lease were valued about £168,800. The average amount of ground rent was £60 invoiced yearly. The lease terminated on 3 June 2080. Considering the 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
Mrs I Murphy owned a ground floor flat in Tregaron in January 2011. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar homes in Tregaron with 100 year plus lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease lapsed in 2091. Taking into account 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.