Unfortunately that a Trimdon residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Trimdon property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Trimdon will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Trimdon with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Trimdon leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the landlord of her leasehold apartment in Trimdon, Ellie commenced the lease extension process as the 80 year mark was fast advancing. The lease extension was concluded in September 2005. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were phoned by Mr I Lewis , who was assigned a lease of a newly refurbished apartment in Trimdon in January 1998. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable properties in Trimdon with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded in 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2010 we were phoned by Mr Adam Hernández who, having purchased a one bedroom flat in Trimdon in September 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Trimdon with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease finished in 2086. Taking into account 60 years left we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus legals.