Tregaron leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Tregaron will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Tregaron,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tregaron valuers.
During the course of the last few months Ollie, started to get close to the 80-year threshold with the lease on his garden flat in Tregaron. Having purchased his flat two decades ago, the length of the lease was of no importance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Ollie was able to extend his lease just ahead of time last April. Ollie and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If the lease had slipped to less than eighty years, the figure would have escalated by a minimum £1,000.
Last Autumn we were contacted by Mr Jasper Harris , who took over the lease of a basement flat in Tregaron in September 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Tregaron with an extended lease were worth £235,200. The average ground rent payable was £45 invoiced quarterly. The lease ran out in 2091. Considering the 66 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Dr Jonathan Norbert moved into a newly refurbished flat in Tregaron in August 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Tregaron with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2102. Considering the 77 years left we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.