As the length of the unexpired term of a Treharris residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Treharris will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Treharris with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Treharris leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Aarav, came precariously near to the 80-year threshold with the lease on his one bedroom flat in Treharris. Having purchased his home two decades ago, the length of the lease was of no interest. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Aarav was able to extend his lease at the eleventh hour in July. Aarav and the landlord who owned the flat above ultimately settled on sum of £5,000 . If the lease had slid to less than eighty years, the figure would have escalated by a minimum £1,050.
Last July we were phoned by Mrs Natasha Davies , who moved into a one bedroom apartment in Treharris in May 2002. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparable premises in Treharris with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 9 July 2101. Considering the 76 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Mr D Girard took over the lease of a ground floor apartment in Treharris in May 2004. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative homes in Treharris with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2090. Taking into account 65 years left we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.