Trelogan leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Trelogan residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Trelogan you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Trelogan with in excess of one hundred years outstanding on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Trelogan can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience procuring Trelogan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan owned a 2 bedroom apartment in Trelogan on the market with a lease of just over fifty eight years unexpired. Logan on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Logan to exercise his statutory right. Logan procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr and Mrs. A Wood , who took over the lease of a ground floor apartment in Trelogan in June 2005. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable residencies in Trelogan with an extended lease were worth £235,200. The mid-range ground rent payable was £45 billed yearly. The lease ended on 28 March 2091. Given that there were 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
Mr and Mrs. G Morel acquired a garden apartment in Trelogan in February 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar properties in Trelogan with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 11 June 2102. Given that there were 77 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.