The re-sale value of a leasehold property in Trefriw is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed prior to the eighty year mark. Leasehold Reform legislation enables Trefriw qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Trefriw with in excess of 100 years remaining 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trefriw can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Trefriw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Austin owned a high value apartment in Trefriw being marketed with a lease of fraction over 72 years remaining. Austin informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Autumn we were phoned by Mr P Robinson , who took over the lease of a basement flat in Trefriw in May 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical properties in Trefriw with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced per annum. The lease finished on 5 March 2082. Given that there were 56 years left we estimated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
In 2013 we were contacted by Dr Harry Scott who, having purchased a one bedroom flat in Trefriw in October 2006. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Similar homes in Trefriw with an extended lease were valued around £242,600. The average amount of ground rent was £45 invoiced per annum. The lease expired on 7 July 2093. Having 67 years left we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including costs.