The closer a domestic lease in Tredegar gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Tredegar will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Tredegar with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Lease extensions in Tredegar can be a difficult process. We recommend you procure guidance 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 dealing with Tredegar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a 2 bedroom flat in Tredegar being marketed with a lease of a few days over 61 years left. Nathan informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. K Williams purchased a garden apartment in Tredegar in August 2009. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical premises in Tredegar with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 invoiced annually. The lease came to a finish in 2079. Considering the 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including professional charges.
In 2014 we were phoned by Dr E Girard who, having purchased a newly refurbished apartment in Tredegar in July 1996. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative properties in Tredegar with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ended in 2099. Given that there were 74 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.