Trelogan residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Trelogan with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Trelogan,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trelogan valuers.
During the course of the last few months Luke, started to get close to the eighty-year mark with the lease on his two bedroom flat in Trelogan. In buying his flat two decades ago, the unexpired term was of no importance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Luke arranged for a lease extension at the eleventh hour in August. Luke and the freeholder via the management company subsequently settled on an amount of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,025.
In 2012 we were called by Dr V Campbell who, having purchased a purpose-built apartment in Trelogan in January 2003. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Trelogan with a long lease were in the region of £215,600. The average amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2087. Given that there were 62 years outstanding we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
In 2013 we were called by Mr and Mrs. L Mason who, having took over the lease of a studio flat in Trelogan in April 2012. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar flats in Trelogan with a long lease were valued about £265,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2098. Taking into account 73 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.