The only way is down when it comes to Tonteg lease terms. Tonteg leaseholds that have a remaining term lower than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Tonteg with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Tonteg leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her purpose-built flat in Tonteg, Bethany commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The legal work was finalised in October 2012. The freeholder’s fees were restricted to a tad over 550 pounds.
In 2010 we were e-mailed by Mr and Mrs. L Sharif who, having moved into a recently refurbished apartment in Tonteg in April 2006. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Tonteg with an extended lease were worth £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2081. Taking into account 56 years remaining we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.
In 2011 we were approached by Dr H Taylor who, having moved into a one bedroom flat in Tonteg in August 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Tonteg with a long lease were valued around £242,600. The average ground rent payable was £45 invoiced quarterly. The lease terminated in 2092. Considering the 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.