When it comes to domestic leasehold property in Trefriw, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Residents in Trefriw with a lease approaching 81 years remaining should seriously think of extending it sooner than later. Once a lease has under eighty years left, under the current Act the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Trefriw with in excess of one hundred years outstanding 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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Trefriw 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 lawyer we work with provide it.
Henry was the the leasehold proprietor of a conversion apartment in Trefriw on the market with a lease of just over 61 years outstanding. Henry informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Summer we were phoned by Dr Eliot Allen , who moved into a recently refurbished apartment in Trefriw in July 2007. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Trefriw with a long lease were worth £166,400. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 9 November 2079. Taking into account 54 years left we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.
Last Autumn we were approach by Mr and Mrs. Y Jones , who completed a one bedroom flat in Trefriw in November 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Trefriw with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 collected annually. The lease ended on 16 November 2090. Given that there were 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.