Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Trelogan. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Trelogan have the right to extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Trelogan lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Trelogan with more than one hundred years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 lawyer we work with provide it.
During the course of the last few months Jacob, started to get close to the eighty-year threshold with the lease on his garden flat in Trelogan. In buying his property 19 years ago, the lease term was of no significance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Jacob was able to extend his lease just under the wire in April. Jacob and the landlord eventually settled on sum of £5,500 . If the lease had fallen below eighty years, the price would have escalated by a minimum £1,100.
Mrs K Simon moved into a studio flat in Trelogan in June 1997. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative residencies in Trelogan with a long lease were worth £270,000. The average ground rent payable was £55 collected annually. The lease came to a finish in 2099. Taking into account 74 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Last April we were phoned by Mr and Mrs. I Ali , who moved into a studio apartment in Trelogan in October 2010. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable properties in Trelogan with an extended lease were in the region of £166,400. The average ground rent payable was £60 collected quarterly. The lease finished in 2079. Considering the 54 years outstanding we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.