It’s a harsh certainty that a Tal y bont residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Tal y bont property prices.Where your lease has approximately ninety years left, you need to start thinking about 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 dips lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Tal y bont will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Tal y bont 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.
Last Summer David, started to get near to the 80-year threshold with the lease on his first floor flat in Tal y bont. In buying his flat two decades ago, the length of the lease was of no importance. Luckily, he recognised he needed to take action soon on Extending the lease. David arranged for a lease extension just under the wire last April. David and the freeholder via the management company subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £900.
Last April we were approach by Mr and Mrs. M Ward , who took over the lease of a newly refurbished apartment in Tal y bont in March 2012. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative homes in Tal y bont with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced monthly. The lease elapsed on 21 March 2083. Having 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.
Mrs B Wood completed a one bedroom flat in Tal y bont in October 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar residencies in Tal y bont with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded in 2103. Having 77 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.