The value of Treharris leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is below than eighty years
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Treharris leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Isaac owned a 2 bedroom flat in Treharris on the market with a lease of fraction over 61 years remaining. Isaac on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last August we were contacted by Mrs Georgia Mason , who bought a one bedroom apartment in Treharris in October 2003. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable residencies in Treharris with a long lease were valued around £267,600. The average amount of ground rent was £65 invoiced per annum. The lease finished on 6 January 2093. Taking into account 67 years left we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 not including costs.
Last Autumn we were e-mailed by Mr and Mrs. P Girard , who purchased a garden flat in Treharris in May 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar homes in Treharris with 100 year plus lease were worth £206,200. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish on 27 June 2082. Taking into account 56 years unexpired we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.