When it comes to domestic leasehold property in Trefnant, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Trefnant with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Trefnant with in excess of 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
In the wake of 9 months of lengthy discussions with the landlord of her first floor flat in Trefnant, Kelsey commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction completed in January 2005. The landlord’s charges were restricted to a tad over 600 pounds.
In 2009 we were e-mailed by Mr and Mrs. V Clark who, having purchased a basement apartment in Trefnant in October 1998. We are asked if we could estimate the price could be for a ninety year lease extension. Identical properties in Trefnant with a long lease were worth £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish in 2095. Taking into account 69 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2009 we were phoned by Dr V Hill who, having owned a newly refurbished flat in Trefnant in May 1997. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Trefnant with a long lease were in the region of £285,000. The average ground rent payable was £55 collected annually. The lease expired in 2106. Given that there were 80 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.