Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Trelogan. Inevitably, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Trelogan have the right to extend the lease for a further ninety years in accordance with statute. Please give careful attention before delaying your Trelogan lease extension. Holding off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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 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 conveyancing solicitor we work with provide it.
Last year William, came critically near to the eighty-year threshold with the lease on his two bedroom flat in Trelogan. In buying his home 18 years previously, the length of the lease was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. William was able to extend his lease just under the wire in May. William and the freeholder via the management company ultimately settled on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by at least £975.
Last Christmas we were called by Mrs I Walker , who bought a one bedroom flat in Trelogan in January 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative premises in Trelogan with an extended lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease came to a finish in 2083. Considering the 57 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
In 2009 we were e-mailed by Mrs Katherine Adams who, having took over the lease of a purpose-built apartment in Trelogan in July 2000. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical properties in Trelogan with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed yearly. The lease ended in 2094. Given that there were 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.