With a domestic leasehold property in Tonteg, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Leasehold owners in Tonteg with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Tonteg with in excess of one hundred 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Tonteg can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Tonteg lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jude, came dangerously near to the eighty-year mark with the lease on his one bedroom flat in Tonteg. Having bought his flat two decades ago, the length of the lease was of little bearing. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Jude arranged for a lease extension just ahead of time last March. Jude and the freeholder via the managing agents in the end settled on sum of £6,000 . If the lease had dropped lower than eighty years, the premium would have increased by a minimum £950.
Last Autumn we were approach by Dr S Alexander , who took over the lease of a first floor apartment in Tonteg in May 1998. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar residencies in Tonteg with a long lease were worth £254,200. The average ground rent payable was £60 billed monthly. The lease came to a finish in 2077. Taking into account 51 years left we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Last month we were e-mailed by Mr and Mrs. L Martinez , who purchased a ground floor apartment in Tonteg in August 2010. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar properties in Tonteg with a long lease were valued about £210,600. The mid-range ground rent payable was £45 collected monthly. The lease end date was in 2088. Considering the 62 years outstanding we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.