As the the remaining lease term of a Talybont domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Talybont will meet the qualifying criteria; that being said a lawyer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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. |
Lease extensions in Talybont can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
18 months ago Harvey, started to get close to the eighty-year threshold with the lease on his garden flat in Talybont. Having bought his home twenty years ago, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Harvey was able to extend his lease at the eleventh hour last January. Harvey and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had dipped lower than 80 years, the sum would have escalated by a minimum £1,150.
Mr C Jones moved into a studio apartment in Talybont in March 2004. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable residencies in Talybont with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated in 2103. Taking into account 77 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
In 2014 we were approached by Mrs R Bell who, having acquired a studio apartment in Talybont in July 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Talybont with 100 year plus lease were in the region of £181,200. The average ground rent payable was £65 invoiced per annum. The lease expired in 2082. Given that there were 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus costs.