Tonteg leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Tonteg tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tonteg you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Tonteg with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society |
Using our service will provide you better control over the value of your Tonteg leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad owned a 2 bedroom flat in Tonteg on the market with a lease of fraction over 61 years left. Muhammad informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Dr Nathan Hill bought a one bedroom flat in Tonteg in August 1998. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Tonteg with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 9 January 2084. Having 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.
In 2013 we were approached by Dr Harrison Wood who, having purchased a ground floor apartment in Tonteg in June 1996. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Tonteg with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 collected annually. The lease ran out on 9 August 2095. Having 69 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.