The market value of a leasehold property in Talybont is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded well before the eighty year threshold. Statute entitles Talybont 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 intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Talybont can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Talybont lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her one bedroom flat in Talybont, Caitlin initiated the lease extension process as the eighty year threshold was rapidly advancing. The lease extension was finalised in October 2013. The freeholder’s fees were restricted to less than 700 pounds.
Mr and Mrs. H Johnson was assigned a lease of a garden flat in Talybont in July 2006. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Talybont with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished on 19 February 2088. Taking into account 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.
Last February we were contacted by Ms M Howard , who took over the lease of a one bedroom flat in Talybont in March 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Talybont with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expiry date was in 2099. Taking into account 74 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.