With a residential leasehold premises in Tredegar, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Tredegar with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the relevant legislation the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Tredegar leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Nathan, came very near to the 80-year threshold with the lease on his garden flat in Tredegar. In buying his property 18 years previously, the lease term was of minimal significance. by good luck, he realised he needed to take action soon on Extending the lease. Nathan arranged for a lease extension at the eleventh hour last September. Nathan and the freeholder in the end settled on sum of £6,000 . If the lease had slid to less than 80 years, the figure would have escalated by a minimum £875.
Last Christmas we were contacted by Mr J Harris , who completed a newly refurbished flat in Tredegar in October 2004. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Tredegar with a long lease were worth £223,400. The average ground rent payable was £60 billed quarterly. The lease concluded on 5 July 2085. Having 59 years remaining we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
Dr F Thompson took over the lease of a ground floor apartment in Tredegar in October 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Tredegar with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 27 January 2105. Considering the 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.