Unfortunately that a Trelogan residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Trelogan property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Trelogan will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 procure guidance from a lawyer and valuer with experience in this area.
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.
Oliver was the the leasehold proprietor of a 2 bedroom apartment in Trelogan on the market with a lease of a little over 61 years left. Oliver informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last month we were called by Mrs Emily Moore , who completed a recently refurbished apartment in Trelogan in July 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Trelogan with 100 year plus lease were valued around £208,200. The average ground rent payable was £65 collected annually. The lease lapsed on 16 May 2087. Considering the 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.
In 2011 we were called by Dr A Mercier who, having bought a studio apartment in Trelogan in January 2005. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparable properties in Trelogan with a long lease were valued about £260,000. The average amount of ground rent was £50 billed per annum. The lease finished on 27 March 2098. Given that there were 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.