Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Trelogan. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Trelogan have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful deliberation before putting off your Trelogan lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold premises in Trelogan with over 100 years remaining 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trelogan can be a difficult process. We recommend you obtain professional help from a lawyer 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 dealing with Trelogan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Samuel, started to get close to the 80-year mark with the lease on his garden apartment in Trelogan. Having purchased his home 18 years previously, the unexpired term was of no relevance. Luckily, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Samuel arranged for a lease extension just in the nick of time in June. Samuel and the freeholder subsequently agreed on an amount of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,000.
Mr Matthew Carter took over the lease of a ground floor flat in Trelogan in September 2001. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Trelogan with a long lease were worth £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ended on 7 January 2100. Given that there were 77 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2013 we were called by Dr Sarah Brown who, having owned a first floor flat in Trelogan in January 2008. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative residencies in Trelogan with a long lease were valued around £183,600. The average amount of ground rent was £65 collected every twelve months. The lease concluded on 27 May 2080. Taking into account 57 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.