It’s an underpublicised certainty that a Treforest residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Treforest property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops 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 The majority of leasehold owners in Treforest will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Treforest valuers.
During the course of the last few months Lewis, started to get close to the eighty-year mark with the lease on his leasehold apartment in Treforest. Having purchased his flat two decades ago, the length of the lease was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Lewis was able to extend his lease just in the nick of time last September. Lewis and the freeholder via the management company in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by a minimum £1,075.
In 2012 we were contacted by Dr A Rivera who, having completed a purpose-built apartment in Treforest in September 2003. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Treforest with an extended lease were valued around £203,200. The average amount of ground rent was £65 collected monthly. The lease concluded on 6 May 2087. Considering the 61 years remaining we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.
Last month we were phoned by Mr M Michel , who was assigned a lease of a one bedroom apartment in Treforest in September 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Treforest with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2098. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.