Chances are that if you own a flat in Tonteg you actually own a long leasehold interest over your property
Leasehold properties in Tonteg with over 100 years outstanding on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Tonteg,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tonteg valuers.
During the course of the last few months Jamie, started to get near to the 80-year mark with the lease on his first floor apartment in Tonteg. In buying his home 19 years previously, the unexpired term was of minimal concern. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Jamie was able to extend his lease at the eleventh hour last August. Jamie and the landlord in the end settled on an amount of £5,500 . If the lease had fallen to less than 80 years, the premium would have become more costly by a minimum £1,025.
Last Spring we were e-mailed by Mr and Mrs. T Carter , who owned a studio flat in Tonteg in August 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Tonteg with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 24 February 2089. Considering the 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
Last July we were called by Dr James Brown , who moved into a purpose-built apartment in Tonteg in July 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Tonteg with an extended lease were valued about £265,000. The mid-range ground rent payable was £55 collected monthly. The lease expiry date was on 1 September 2100. Given that there were 74 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.