The re-sale value of a leasehold property in Tonteg depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year mark. Leasehold Reform legislation enables Tonteg qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Tonteg,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tonteg valuers.
Trailing lengthy correspondence with the freeholder of her first floor apartment in Tonteg, Kate initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension completed in November 2014. The freeholder’s costs were restricted to below 550 GBP.
Dr B Lewis took over the lease of a studio flat in Tonteg in May 1997. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Tonteg with a long lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease end date was on 17 September 2100. Considering the 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Last month we were contacted by Dr Ali Cox , who completed a purpose-built flat in Tonteg in October 2006. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Tonteg with an extended lease were worth £173,800. The mid-range ground rent payable was £60 collected monthly. The lease terminated in 2080. Given that there were 55 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.