Talsarnau residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Talsarnau with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a landlord in Talsarnau,the lease extension solicitors 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.
In recent months Lucas, started to get near to the 80-year mark with the lease on his basement flat in Talsarnau. Having bought his home two decades ago, the unexpired term was of little bearing. Thankfully, he noticed he needed to take action soon on a lease extension. Lucas was able to extend his lease at the eleventh hour in January. Lucas and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had fallen lower than 80 years, the price would have increased by at least £1,025.
Last May we were called by Mr and Mrs. K Johnson , who bought a basement apartment in Talsarnau in April 2010. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Talsarnau with an extended lease were in the region of £250,400. The average amount of ground rent was £65 invoiced yearly. The lease expired on 4 June 2089. Given that there were 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
Dr F Rivera completed a purpose-built flat in Talsarnau in November 2012. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Talsarnau with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 15 April 2078. Having 53 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.