It’s a harsh truth that a Tremeirchion residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Tremeirchion property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Tremeirchion will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Tremeirchion with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Tremeirchion,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tremeirchion valuers.
Half a year ago Finley, started to get close to the 80-year threshold with the lease on his purpose- built flat in Tremeirchion. Having purchased his home 19 years previously, the length of the lease was of no relevance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Finley arranged for a lease extension just ahead of time last July. Finley and the freeholder subsequently agreed on the final figure of £5,000 . If the lease had descended lower than 80 years, the price would have increased by a minimum £1,125.
Mr R Howard acquired a purpose-built apartment in Tremeirchion in April 2005. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Tremeirchion with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2100. Taking into account 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last month we were called by Ms F Allen , who completed a one bedroom flat in Tremeirchion in September 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar homes in Tremeirchion with an extended lease were worth £168,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished in 2080. Having 55 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including legals.