As the the remaining lease term of a Tal y bont domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Tal y bont will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Tal y bont with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Callum owned a conversion apartment in Tal y bont being sold with a lease of a few days over 61 years outstanding. Callum on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. I Ricardo acquired a one bedroom apartment in Tal y bont in July 2007. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical homes in Tal y bont with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 25 May 2097. Having 71 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Mr J Lambert purchased a first floor apartment in Tal y bont in January 2002. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Similar premises in Tal y bont with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2086. Given that there were 60 years left we calculated the premium to the freeholder to extend the lease to be between £24,700 and £28,600 plus fees.