Why you should commence your Trefnant lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/trefnant">Trefnant</a> lease depreciates with the years remaining on the lease.
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<p> The value of Trefnant leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years
<h4>Trefnant property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Trefnant with over 100 years outstanding 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 home. 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. <h4>Lending institutions may not issue a mortgage on a short lease</h4> Mortgage companies are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering a number of flats in Trefnant were built in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.
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<th> Requirement
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<td>Coventry Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Trefnant lease extension solicitors or enfranchisement solicitors
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The conveyancers that we work with procure Trefnant 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 lawyer we work with provide it.
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Trefnant Lease Extension Case Summaries:
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<h5> Dylan, Trefnant, Denbighshire,</h5>
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Dylan owned a 2 bedroom apartment in Trefnant being marketed with a lease of just over 59 years left. Dylan on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
<h5>Trefnant case:</h5>
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Last Winter we were phoned by Mr and Mrs. A Ricardo , who
acquired a garden apartment in Trefnant in September 2012. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Trefnant with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expiry date was on 9 January 2099. Taking into account 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
<h5>Trefnant case:</h5>
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Last Autumn we were phoned by Mr and Mrs. F Taylor , who
acquired a purpose-built flat in Trefnant in May 2002. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical homes in Trefnant with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced per annum. The lease concluded in 2079. Given that there were 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including legals.
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