Trefriw leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Trefriw enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Trefriw you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Trefriw,the lease extension solicitors 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.
Trailing lengthy negotiations with the landlord of her two bedroom flat in Trefriw, Catherine initiated the lease extension process as the 80 year threshold was quickly approaching. The lease extension completed in January 2009. The landlord’s charges were negotiated to approximately four hundred GBP.
In 2012 we were contacted by Mrs Y Leroy who, having was assigned a lease of a studio flat in Trefriw in February 2011. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Trefriw with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2086. Having 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including professional charges.
In 2014 we were contacted by Mr and Mrs. Y Ward who, having moved into a ground floor flat in Trefriw in November 2000. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Trefriw with a long lease were valued about £260,000. The average amount of ground rent was £50 invoiced yearly. The lease expiry date was in 2097. Given that there were 72 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.