The re-sale value of a leasehold property in Tredegar is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed well before the eighty year threshold. Leasehold Reform legislation enables Tredegar qualifying lessees to an additional term of 90 years over and above the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Tredegar with more than 100 years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
| 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 Tredegar,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 Tredegar valuers.
In 2014 Matthew, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Tredegar. In buying his flat two decades ago, the lease term was of minimal relevance. Thankfully, he noticed he needed to take action soon on a lease extension. Matthew arranged for a lease extension at the eleventh hour last August. Matthew and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the sum would have become more costly by a minimum £875.
Dr A Johnson bought a basement apartment in Tredegar in July 1999. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Tredegar with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed in 2091. Given that there were 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus fees.
In 2013 we were contacted by Mr Luke Sharif who, having took over the lease of a studio flat in Tredegar in February 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Tredegar with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 billed annually. The lease ran out on 15 November 2080. Given that there were 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.