Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Trefnant. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Trefnant have the right to extend the lease for an additional 90 years under statute. Please give due attention before putting off your Trefnant lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold premises in Trefnant with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Last Spring Ali, started to get close to the 80-year mark with the lease on his basement apartment in Trefnant. Having purchased his property 18 years ago, the lease term was of minimal relevance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Ali arranged for a lease extension just ahead of time last March. Ali and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he had missed the deadline, the premium would have gone up by at least £925.
Last Christmas we were phoned by Dr Lydia Ward , who took over the lease of a one bedroom apartment in Trefnant in March 2000. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical properties in Trefnant with an extended lease were worth £275,000. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 6 May 2103. Taking into account 77 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
In 2012 we were called by Mr and Mrs. P Garcia who, having took over the lease of a one bedroom flat in Trefnant in January 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparable premises in Trefnant with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish in 2083. Having 57 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.