The market value of a leasehold property in Trelogan depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year threshold. Statute entitles Trelogan qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Trelogan can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Trelogan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob owned a 2 bedroom apartment in Trelogan on the market with a lease of a few days over 59 years remaining. Jacob informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Dr J Morel took over the lease of a recently refurbished apartment in Trelogan in January 2003. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Trelogan with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 billed per annum. The lease ended in 2100. Taking into account 75 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2013 we were called by Mrs Phoebe García who, having acquired a studio apartment in Trelogan in September 1998. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable homes in Trelogan with 100 year plus lease were valued around £173,800. The mid-range ground rent payable was £65 collected annually. The lease finished on 10 March 2080. Taking into account 55 years remaining we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.