It’s an underpublicised certainty that a Trelogan residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Trelogan property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Trelogan will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Trelogan with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Austin owned a studio flat in Trelogan being marketed with a lease of a few days over fifty eight years remaining. Austin on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Austin to exercise his statutory right. Austin procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were approached by Mr and Mrs. M Brown who, having acquired a garden apartment in Trelogan in September 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Trelogan with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended on 26 January 2079. Given that there were 53 years left we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.
In 2009 we were phoned by Mr and Mrs. K Girard who, having owned a one bedroom flat in Trelogan in August 1995. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in Trelogan with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 billed per annum. The lease elapsed on 1 January 2090. Considering the 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of professional charges.