For those whose Trelogan home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Trelogan with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Trelogan can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Trelogan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a high value flat in Trelogan being sold with a lease of just over fifty eight years remaining. Aarav on an informal basis spoke with 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 on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2010 we were approached by Mr and Mrs. T Johnson who, having owned a first floor apartment in Trelogan in November 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Trelogan with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed monthly. The lease ran out on 19 May 2102. Given that there were 76 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Spring we were e-mailed by Mr and Mrs. M Cooper , who moved into a garden flat in Trelogan in January 2002. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Trelogan with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced monthly. The lease finished on 9 February 2082. Taking into account 56 years remaining we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including expenses.