Treuddyn leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Treuddyn residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Treuddyn you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Treuddyn leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her first floor apartment in Treuddyn, Alice initiated the lease extension process as the eighty year deadline was fast coming. The legal work was concluded in February 2009. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mrs O Hernández , who took over the lease of a first floor apartment in Treuddyn in January 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Treuddyn with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ended in 2104. Taking into account 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Last Christmas we were e-mailed by Mr and Mrs. C Clarke , who owned a first floor apartment in Treuddyn in May 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Treuddyn with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished on 12 June 2084. Having 60 years left we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus expenses.