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 escalate substantially once the remaining term is less than eighty years
Leasehold properties in Trefnant with in excess of 100 years remaining on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Trefnant can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Trefnant lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her basement flat in Trefnant, Millie commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in July 2006. The freeholder’s costs were restricted to approximately 450 pounds.
Mr and Mrs. K Vincent bought a garden apartment in Trefnant in August 1997. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable premises in Trefnant with a long lease were valued around £220,400. The average amount of ground rent was £45 billed per annum. The lease elapsed in 2090. Taking into account 64 years unexpired we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 plus legals.
Last March we were called by Dr C François , who purchased a first floor flat in Trefnant in May 2003. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Trefnant with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 billed annually. The lease end date was in 2101. Having 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.