Talsarnau residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Talsarnau with in excess of 100 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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Talsarnau,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Talsarnau valuers.
Last year Felix, started to get close to the 80-year mark with the lease on his one bedroom apartment in Talsarnau. Having purchased his home 18 years ago, the length of the lease was of little concern. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Felix extended the lease just in the nick of time last May. Felix and the landlord ultimately agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the premium would have increased by a minimum £1,050.
Mr and Mrs. G Edwards acquired a purpose-built apartment in Talsarnau in June 1997. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Talsarnau with an extended lease were worth £181,600. The average amount of ground rent was £55 billed every twelve months. The lease ended in 2077. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
In 2013 we were phoned by Ms Zoe Bailey who, having moved into a recently refurbished apartment in Talsarnau in January 1996. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparable premises in Talsarnau with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended in 2097. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.