On the balance of probabilities if you own a flat in Tregaron you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Tregaron can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 a wealth of experience 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.
Off the back of lengthy negotiations with the landlord of her garden flat in Tregaron, Emma commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work was finalised in July 2006. The freeholder’s charges were negotiated to a tad over 550 pounds.
In 2010 we were called by Ms W Reed who, having purchased a first floor flat in Tregaron in October 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable premises in Tregaron with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease finished on 22 March 2081. Given that there were 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.
Dr G Turner took over the lease of a studio flat in Tregaron in June 2000. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Tregaron with 100 year plus lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2092. Considering the 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.