With a residential leasehold premises in Trefnant, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Trefnant with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has under 80 years left, under the relevant Act the landlord can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Trefnant with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaing 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. |
Engaging our service will provide you increased control over the value of your Trefnant leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a 2 bedroom flat in Trefnant being marketed with a lease of fraction over 61 years left. Jackson on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. F Baker moved into a first floor apartment in Trefnant in May 2012. We are asked if we could approximate the price could be to prolong the lease by ninety years. Identical premises in Trefnant with a long lease were valued around £255,000. The average ground rent payable was £50 collected yearly. The lease terminated in 2093. Having 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of professional charges.
Last March we were e-mailed by Mr and Mrs. D Davies , who completed a one bedroom apartment in Trefnant in March 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Trefnant with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 invoiced yearly. The lease finished on 3 July 2073. Given that there were 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.