Trelogan leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Trelogan will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Trelogan with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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; |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Trelogan leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months George, started to get close to the eighty-year mark with the lease on his garden flat in Trelogan. Having purchased his property 19 years previously, the unexpired term was of no interest. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. George arranged for a lease extension just under the wire last March. George and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by at least £875.
In 2011 we were called by Mrs K White who, having completed a basement flat in Trelogan in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical flats in Trelogan with an extended lease were valued about £198,400. The average ground rent payable was £65 collected annually. The lease lapsed on 9 February 2084. Taking into account 59 years remaining we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of expenses.
Last Summer we were approach by Mr Edward Thompson , who purchased a studio apartment in Trelogan in October 1995. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative homes in Trelogan with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2095. Taking into account 70 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.