When it comes to long leasehold premises in Tregaron, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in Tregaron with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has below eighty years remaining, under the current statute the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Tregaron with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Tregaron leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago David, came critically close to the eighty-year mark with the lease on his leasehold apartment in Tregaron. Having purchased his home two decades ago, the unexpired term was of little interest. by good luck, he realised he needed to take action soon on Extending the lease. David extended the lease just in the nick of time in July. David and the landlord ultimately settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the amount would have escalated by at least £1,050.
In 2009 we were approached by Mr and Mrs. M Hernández who, having was assigned a lease of a one bedroom apartment in Tregaron in August 2012. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical flats in Tregaron with 100 year plus lease were worth £193,400. The average ground rent payable was £65 billed monthly. The lease termination date was in 2084. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.
Last month we were contacted by Mr C García , who was assigned a lease of a purpose-built flat in Tregaron in September 1999. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Tregaron with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed on 23 February 2095. Considering the 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.