With a domestic leasehold premises in Tregaron, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Tregaron with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has less than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Tregaron with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland |
Retaining our service gives you better control over the value of your Tregaron leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a studio flat in Tregaron on the market with a lease of just over fifty eight years outstanding. Ollie on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
In 2014 we were contacted by Mr and Mrs. M Lefèvre who, having purchased a purpose-built flat in Tregaron in May 2000. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Tregaron with a long lease were valued around £245,000. The average ground rent payable was £45 collected per annum. The lease finished in 2094. Given that there were 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2014 we were approached by Ms T Martin who, having was assigned a lease of a purpose-built flat in Tregaron in April 1995. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Tregaron with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 collected yearly. The lease end date was in 2105. Taking into account 79 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.