For those whose Tonypandy home is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Tonypandy,the lease extension solicitors that we work with will always be willing 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.
Oscar was the the leasehold proprietor of a studio apartment in Tonypandy on the market with a lease of a few days over 61 years unexpired. Oscar on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. W Cook who, having bought a one bedroom apartment in Tonypandy in January 2009. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical homes in Tonypandy with a long lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2100. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr I Girard purchased a first floor flat in Tonypandy in February 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Tonypandy with a long lease were worth £166,400. The mid-range ground rent payable was £60 billed per annum. The lease terminated in 2080. Considering the 54 years unexpired we estimated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.