When it comes to residential leasehold premises in Treforest, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Treforest with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has less than eighty years left, under the relevant statute the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Treforest with in excess of 100 years outstanding on the lease are sometimes referred to as ‘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 service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Retaining our service gives you increased control over the value of your Treforest leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her one bedroom flat in Treforest, Chelsea started the lease extension process as the 80 year mark was swiftly advancing. The lease extension was concluded in June 2013. The landlord’s costs were restricted to under 650 pounds.
Last Christmas we were e-mailed by Dr I Girard , who moved into a studio apartment in Treforest in July 2006. The question was if we could approximate the price could be for a 90 year lease extension. Comparative flats in Treforest with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected monthly. The lease expired on 2 March 2103. Taking into account 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
Mr and Mrs. G Flores acquired a ground floor flat in Treforest in September 2005. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Treforest with an extended lease were worth £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease ran out on 6 April 2083. Taking into account 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus costs.