The re-sale value of a leasehold property in Tonyrefail is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year threshold. Statute enables Tonyrefail qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason 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.
Leasehold properties in Tonyrefail with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you increased control over the value of your Tonyrefail leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a high value apartment in Tonyrefail on the market with a lease of a few days over fifty eight years remaining. Mason informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2014 we were approached by Ms O Brooks who, having owned a purpose-built flat in Tonyrefail in May 2005. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Tonyrefail with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease expiry date was on 17 January 2103. Having 78 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Last Christmas we were e-mailed by Ms Alisha Brown , who completed a basement apartment in Tonyrefail in January 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Tonyrefail with 100 year plus lease were worth £186,000. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 1 August 2083. Taking into account 58 years left we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including fees.