When it comes to residential leasehold premises in Trelogan, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years left. Leasehold owners in Trelogan with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has less than eighty years left, under the current legislation the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Trelogan with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Trelogan,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Trelogan valuers.
Aarav was the the leasehold proprietor of a high value flat in Trelogan being sold with a lease of a few days over 61 years left. Aarav informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2010 we were approached by Mr and Mrs. D Lefebvre who, having bought a garden apartment in Trelogan in January 2012. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative homes in Trelogan with an extended lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced annually. The lease lapsed on 1 May 2091. Taking into account 65 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
Last year we were contacted by Mr and Mrs. N Jones , who moved into a garden flat in Trelogan in July 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Trelogan with an extended lease were valued about £275,000. The average amount of ground rent was £55 invoiced yearly. The lease termination date was on 5 November 2102. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.