With a residential leasehold property in Treharris, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Treharris with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has below 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Treharris 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 conveyancing solicitor we work with provide it.
Austin owned a high value apartment in Treharris being sold with a lease of a few days over 72 years remaining. Austin informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. 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 informally and readily saleable.
Last February we were e-mailed by Mrs Danielle Fournier , who purchased a one bedroom flat in Treharris in September 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar properties in Treharris with a long lease were in the region of £250,400. The average ground rent payable was £65 billed per annum. The lease ran out in 2089. Considering the 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including costs.
Mr and Mrs. L Collins moved into a first floor flat in Treharris in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Treharris with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 collected monthly. The lease concluded on 8 May 2078. Having 53 years unexpired we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.