The market value of a leasehold property in Taffs Well depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year cut off point. Statute enables Taffs Well qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Taffs Well with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Taffs Well,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Taffs Well valuers.
In recent months Nathan, started to get near to the eighty-year mark with the lease on his garden flat in Taffs Well. In buying his property two decades ago, the lease term was of no concern. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Nathan extended the lease at the eleventh hour last July. Nathan and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If the lease had slid to less than eighty years, the figure would have increased by at least £1,000.
Mrs Robyn Parker was assigned a lease of a purpose-built flat in Taffs Well in January 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Taffs Well with 100 year plus lease were worth £193,400. The average ground rent payable was £65 invoiced per annum. The lease lapsed on 16 October 2084. Taking into account 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.
In 2012 we were phoned by Mr and Mrs. H García who, having purchased a first floor apartment in Taffs Well in June 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Taffs Well with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 22 October 2095. Given that there were 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 not including legals.