Tonyrefail leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Tonyrefail will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Tonyrefail with in excess of 100 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Tonyrefail leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Kian, came precariously near to the 80-year mark with the lease on his first floor apartment in Tonyrefail. In buying his flat two decades ago, the unexpired term was of minimal significance. Fortunately, he realised he needed to take steps soon on a lease extension. Kian extended the lease just ahead of time last May. Kian and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,125.
Last Autumn we were phoned by Mr and Mrs. I Davis , who purchased a one bedroom apartment in Tonyrefail in August 1996. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Tonyrefail with a long lease were valued around £265,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed on 12 May 2099. Having 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Mr F Morel acquired a first floor apartment in Tonyrefail in July 2005. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Tonyrefail with a long lease were worth £264,000. The average ground rent payable was £60 collected monthly. The lease ended on 2 August 2079. Considering the 53 years remaining we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus professional charges.