The value of Tredegar leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold premises in Tredegar with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| 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 |
| Yorkshire 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. |
The conveyancers that we work with handle Tredegar 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 lawyer we work with provide it.
Half a year ago Logan, started to get close to the 80-year mark with the lease on his purpose- built apartment in Tredegar. In buying his property 18 years previously, the lease term was of minimal importance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Logan extended the lease at the eleventh hour last May. Logan and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £950.
Mrs E Anderson bought a newly refurbished flat in Tredegar in March 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Tredegar with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced annually. The lease lapsed on 6 May 2090. Given that there were 65 years remaining we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.
Mrs Isabella Davies completed a one bedroom flat in Tredegar in January 2005. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Tredegar with a long lease were valued about £191,400. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2079. Having 54 years unexpired we estimated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.