It’s a harsh truth that a Treforest residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Treforest property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Treforest will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Treforest can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Treforest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Harrison, started to get near to the eighty-year mark with the lease on his studio apartment in Treforest. Having purchased his home twenty years ago, the length of the lease was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Harrison arranged for a lease extension just under the wire last July. Harrison and the freeholder eventually settled on sum of £5,000 . If the lease had slipped below eighty years, the figure would have become more costly by a minimum £925.
In 2013 we were called by Mrs F Brown who, having completed a garden apartment in Treforest in November 2006. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical properties in Treforest with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 collected yearly. The lease ended in 2082. Having 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus professional charges.
In 2009 we were contacted by Dr Francesca Rogers who, having purchased a studio flat in Treforest in July 2002. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Treforest with 100 year plus lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended in 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.