The closer a domestic lease in Trelogan gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Trelogan will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify 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 Trelogan with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Last Spring Lewis, started to get near to the 80-year mark with the lease on his studio apartment in Trelogan. In buying his property two decades ago, the length of the lease was of minimal interest. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Lewis extended the lease just under the wire in August. Lewis and the freeholder via the management company subsequently agreed on an amount of £5,000 . If the lease had dipped below 80 years, the amount would have gone up by at least £1,050.
Mr and Mrs. E Dupont completed a one bedroom apartment in Trelogan in August 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Trelogan with an extended lease were worth £270,000. The mid-range ground rent payable was £55 collected monthly. The lease ended in 2101. Considering the 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2012 we were e-mailed by Mrs W Nelson who, having moved into a studio flat in Trelogan in April 1996. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Trelogan with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2081. Taking into account 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.