With a residential leasehold premises in Trimdon, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Trimdon with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the current Act the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Trimdon,the lease extension experts 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 Trimdon valuers.
Subsequent to unsuccessful correspondence with the freeholder of her garden apartment in Trimdon, Kelsey commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction was finalised in October 2015. The landlord’s costs were kept to an absolute minimum.
Ms T Nguyen owned a studio flat in Trimdon in August 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Trimdon with an extended lease were valued about £218,000. The average ground rent payable was £45 collected annually. The lease lapsed in 2089. Given that there were 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including fees.
Last year we were approach by Dr Georgia Davies , who acquired a one bedroom flat in Trimdon in October 2009. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Trimdon with a long lease were worth £265,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated in 2100. Considering the 74 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.