The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Tonypandy may extend the lease for an additional ninety years in accordance with legislation. Do give careful consideration before delaying your Tonypandy lease extension. Putting off the costs today simply escalates the price you will ultimately have to pay to extend the lease.
Leasehold premises in Tonypandy with over one hundred years unexpired 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Tonypandy,the lease extension lawyers 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 Tonypandy valuers.
Lucas owned a 2 bedroom flat in Tonypandy on the market with a lease of a few days over sixty years remaining. Lucas on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were phoned by Mr Benjamin Bernard who, having was assigned a lease of a one bedroom apartment in Tonypandy in October 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative premises in Tonypandy with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 collected quarterly. The lease ended in 2104. Considering the 79 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last year we were contacted by Mrs Isabella Laurent , who took over the lease of a first floor flat in Tonypandy in August 2009. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable properties in Tonypandy with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 collected monthly. The lease expired in 2084. Given that there were 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.