When it comes to domestic leasehold property in Trelogan, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Trelogan with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Trelogan with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Trelogan 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.
Off the back of unsuccessful discussions with the landlord of her basement apartment in Trelogan, Katherine commenced the lease extension process as the 80 year deadline was fast advancing. The transaction completed in February 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. G Bernard owned a garden apartment in Trelogan in October 2007. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Trelogan with a long lease were valued around £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease ended on 14 February 2103. Considering the 77 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2012 we were e-mailed by Dr Amber Davies who, having bought a newly refurbished apartment in Trelogan in March 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative residencies in Trelogan with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended in 2083. Having 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.