Tonyrefail leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Tonyrefail will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Tonyrefail with over 100 years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with handle Tonyrefail 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 conveyancer we work with provide it.
Andrew owned a conversion apartment in Tonyrefail being marketed with a lease of just over 61 years remaining. Andrew informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2012 we were approached by Dr Teddy Green who, having bought a one bedroom flat in Tonyrefail in June 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative premises in Tonyrefail with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected yearly. The lease expired in 2082. Given that there were 56 years left we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.
In 2009 we were called by Mr and Mrs. J Bell who, having purchased a one bedroom flat in Tonyrefail in April 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Tonyrefail with 100 year plus lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected annually. The lease elapsed on 6 January 2093. Taking into account 67 years remaining we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of expenses.