Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Talybont. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Talybont have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful attention before delaying your Talybont lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Talybont leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her first floor apartment in Talybont, Catherine initiated the lease extension process as the 80 year mark was quickly coming. The legal work was finalised in November 2015. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were approach by Mrs Chloe Clarke , who moved into a one bedroom apartment in Talybont in February 2009. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Talybont with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 collected quarterly. The lease ran out on 19 February 2091. Given that there were 65 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Summer we were contacted by Mrs F Richardson , who owned a studio apartment in Talybont in January 2005. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Talybont with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2101. Considering the 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.