When it comes to long leasehold premises in Tredegar, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Tredegar with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Tredegar with in excess of 100 years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Virgin |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Dexter was the the leasehold proprietor of a 2 bedroom flat in Tredegar being sold with a lease of a few days over fifty eight years outstanding. Dexter on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2011 we were phoned by Ms W Bertrand who, having acquired a ground floor flat in Tredegar in February 1996. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Tredegar with an extended lease were in the region of £181,600. The average amount of ground rent was £55 billed per annum. The lease elapsed on 16 September 2078. Taking into account 52 years outstanding we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last year we were contacted by Ms L Martínez , who took over the lease of a one bedroom apartment in Tredegar in May 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Tredegar with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out in 2098. Taking into account 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.