Trimdon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Trimdon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Trimdon you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Godiva Mortgages | 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. |
| 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 lawyers 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.
Noah owned a 2 bedroom apartment in Trimdon being marketed with a lease of just over 59 years left. Noah on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were contacted by Mr William Carter who, having bought a one bedroom apartment in Trimdon in July 2008. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable flats in Trimdon with a long lease were valued about £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease ended on 2 February 2085. Having 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
Mr M Roberts took over the lease of a purpose-built flat in Trimdon in August 2003. The question was if we could estimate the price would be to extend the lease by an additional years. Identical properties in Trimdon with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 27 September 2096. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus expenses.