Taffs Well 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 your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Taffs Well residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Taffs Well you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases 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 remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Taffs Well lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted correspondence with the landlord of her purpose-built apartment in Taffs Well, Abigail started the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction was finalised in June 2015. The landlord’s fees were restricted to less than five hundred GBP.
Mr and Mrs. C Dupont purchased a studio apartment in Taffs Well in March 1997. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Taffs Well with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2103. Considering the 78 years as a residual term we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last Winter we were called by Mr Dylan Wright , who purchased a garden apartment in Taffs Well in January 2001. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Taffs Well with an extended lease were valued around £191,000. The average amount of ground rent was £65 collected monthly. The lease termination date was on 11 September 2083. Having 58 years remaining we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of fees.