Unfortunately that a Tonyrefail residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Tonyrefail property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Tonyrefail will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Tonyrefail,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tonyrefail valuers.
Following unsuccessful correspondence with the landlord of her garden apartment in Tonyrefail, Isabella started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in November 2007. The freeholder’s costs were negotiated to approximately 550 pounds.
Mr and Mrs. H Reed was assigned a lease of a basement apartment in Tonyrefail in April 2009. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar properties in Tonyrefail with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2084. Considering the 59 years remaining we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.
In 2012 we were e-mailed by Mr and Mrs. I Girard who, having took over the lease of a one bedroom apartment in Tonyrefail in June 1997. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical properties in Tonyrefail with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease concluded on 18 August 2095. Considering the 70 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.