The closer a domestic lease in Trefnant gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Trefnant will meet the qualifying criteria; that being said a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a landlord in Trefnant,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trefnant valuers.
Two years ago Daniel, came perilously near to the 80-year mark with the lease on his garden flat in Trefnant. In buying his property two decades ago, the unexpired term was of little significance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Daniel arranged for a lease extension just under the wire last March. Daniel and the freeholder eventually settled on a premium of £5,000 . If the lease had slid lower than eighty years, the price would have escalated by at least £1,100.
In 2009 we were phoned by Dr K Thompson who, having took over the lease of a garden apartment in Trefnant in June 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Identical flats in Trefnant with a long lease were in the region of £186,000. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2083. Given that there were 58 years left we calculated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of legals.
In 2012 we were contacted by Dr Leo Bertrand who, having acquired a studio flat in Trefnant in February 2006. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Trefnant with a long lease were valued around £250,000. The mid-range ground rent payable was £50 billed yearly. The lease finished in 2094. Given that there were 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.