The nearer a domestic lease in Tredegar gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Tredegar will qualify for this right; however a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Tredegar with in excess of 100 years left on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Tredegar leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a 2 bedroom apartment in Tredegar being marketed with a lease of just over 61 years unexpired. Leon informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Dr J Jackson , who bought a recently refurbished flat in Tredegar in June 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical premises in Tredegar with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed in 2106. Having 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Last Christmas we were e-mailed by Dr Hugo Morgan , who purchased a recently refurbished flat in Tredegar in May 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Tredegar with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 15 March 2095. Given that there were 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.