Chances are that if you own a flat in Tredegar you actually own a long leasehold interest over your property
Leasehold premises in Tredegar with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Tredegar leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her first floor flat in Tredegar, Eleanor commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in October 2014. The landlord’s fees were negotiated to below 500 pounds.
Ms Lydia Cooper was assigned a lease of a one bedroom flat in Tredegar in June 2004. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative flats in Tredegar with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed in 2081. Considering the 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including expenses.
Dr H Morris bought a purpose-built flat in Tredegar in November 2002. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Tredegar with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 26 March 2101. Considering the 75 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.