Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Trelogan. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Trelogan have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Trelogan lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Trelogan with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Trelogan can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 Trelogan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful discussions with the freeholder of her ground floor flat in Trelogan, Isabel started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work was concluded in January 2014. The landlord’s charges were kept to an absolute minimum.
In 2014 we were contacted by Dr T Walker who, having bought a studio flat in Trelogan in June 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical properties in Trelogan with an extended lease were valued about £285,000. The average amount of ground rent was £55 invoiced monthly. The lease terminated on 18 July 2104. Given that there were 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Last Spring we were phoned by Mr and Mrs. Y Mitchell , who purchased a basement apartment in Trelogan in June 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Trelogan with a long lease were valued about £198,400. The average ground rent payable was £65 collected annually. The lease concluded on 7 July 2084. Taking into account 59 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus costs.