As the the remaining lease term of a Tredegar residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Tredegar will qualify for this right; that being said a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Tredegar with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service will provide you enhanced control over the value of your Tredegar leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her one bedroom apartment in Tredegar, Yasmin initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work completed in January 2013. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Mr E Phillips who, having bought a one bedroom flat in Tredegar in September 1998. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative homes in Tredegar with a long lease were valued about £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease finished on 25 August 2077. Given that there were 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.
Last Spring we were approach by Mr Dexter Bell , who acquired a basement apartment in Tredegar in July 1997. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparative homes in Tredegar with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2097. Taking into account 71 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.