The nearer a residential lease in Trefriw nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Trefriw will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Trefriw,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Trefriw valuers.
Subsequent to lengthy correspondence with the landlord of her one bedroom apartment in Trefriw, Elizabeth initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was finalised in May 2007. The landlord’s costs were kept to an absolute minimum.
Mr Liam Jones was assigned a lease of a garden flat in Trefriw in March 1996. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Trefriw with an extended lease were valued about £235,200. The average ground rent payable was £45 collected monthly. The lease ended on 27 February 2091. Taking into account 66 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
Ms Natalie Robinson purchased a recently refurbished apartment in Trefriw in October 2011. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical flats in Trefriw with 100 year plus lease were valued about £280,000. The average amount of ground rent was £55 invoiced per annum. The lease lapsed in 2102. Having 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.