For those whose Treforest property is held on a long lease, our message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Treforest with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 conveyancers that we work with handle Treforest 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 conveyancer we work with provide it.
In the wake of 6 months of protracted negotiations with the landlord of her leasehold flat in Treforest, Maisie started the lease extension process just as her lease was approaching the all-important eighty-year mark. The legal work was concluded in February 2009. The freeholder’s charges were negotiated to less than 700 pounds.
In 2009 we were called by Mr and Mrs. B Morel who, having purchased a ground floor flat in Treforest in January 2003. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparative flats in Treforest with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish in 2099. Having 73 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2014 we were phoned by Mr and Mrs. C Simon who, having took over the lease of a first floor flat in Treforest in November 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar premises in Treforest with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2079. Taking into account 53 years left we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of costs.