The value of Tonypandy leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The conveyancing solicitors that we work with handle Tonypandy lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After lengthy correspondence with the landlord of her purpose-built apartment in Tonypandy, Kirsty started the lease extension process as the eighty year deadline was swiftly advancing. The transaction was finalised in February 2010. The freeholder’s costs were kept to an absolute minimum.
Last month we were called by Mr and Mrs. E Rivera , who was assigned a lease of a purpose-built apartment in Tonypandy in January 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Tonypandy with an extended lease were valued about £270,000. The average amount of ground rent was £55 billed yearly. The lease expiry date was on 16 January 2102. Considering the 76 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last November we were called by Dr W Ramírez , who took over the lease of a studio apartment in Tonypandy in June 2007. We are asked 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 an extended lease were worth £173,800. The mid-range ground rent payable was £65 billed monthly. The lease terminated on 13 February 2081. Taking into account 55 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.