There is no doubt about it a leasehold property in Treforest is a wasting asset as a result of the shortening lease. If the lease has, more than 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Treforest will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Treforest with in excess of one hundred years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Treforest,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Treforest valuers.
Trailing unsuccessful correspondence with the freeholder of her basement apartment in Treforest, Natalie started the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension was concluded in June 2013. The landlord’s charges were negotiated to about 650 GBP.
In 2009 we were approached by Dr John Vincent who, having purchased a ground floor flat in Treforest in January 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Treforest with an extended lease were valued around £166,400. The average ground rent payable was £60 invoiced annually. The lease ran out in 2079. Taking into account 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.
Last Christmas we were contacted by Mr and Mrs. W Morel , who purchased a garden flat in Treforest in March 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Treforest with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease finished in 2090. Considering the 65 years remaining we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.