Tredegar residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Tredegar with more than 100 years left on the lease are often 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Tredegar can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Tredegar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy discussions with the landlord of her leasehold flat in Tredegar, Danielle commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in July 2013. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Dr A Bonnet who, having bought a basement flat in Tredegar in September 2012. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Identical properties in Tredegar with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed annually. The lease concluded on 11 April 2105. Given that there were 79 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last month we were e-mailed by Dr Blake Carter , who bought a recently refurbished apartment in Tredegar in August 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Tredegar with an extended lease were worth £275,000. The average ground rent payable was £65 collected yearly. The lease ran out in 2094. Taking into account 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.