Tonypandy leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Leasehold owners in Tonypandy will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Tonypandy,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 experience and the close ties they enjoy with Tonypandy valuers.
During the course of the last few months Logan, started to get close to the 80-year threshold with the lease on his studio flat in Tonypandy. Having purchased his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Logan arranged for a lease extension just under the wire last June. Logan and the freeholder via the management company subsequently settled on sum of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £1,100.
In 2014 we were approached by Mr T Ramírez who, having moved into a one bedroom apartment in Tonypandy in August 2001. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable residencies in Tonypandy with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 billed annually. The lease finished in 2085. Considering the 60 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
In 2011 we were e-mailed by Dr Rhiannon David who, having moved into a first floor flat in Tonypandy in September 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Tonypandy with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated on 19 August 2096. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.