Tremeirchion residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Tremeirchion with over 100 years left 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 property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Tremeirchion,the lease extension lawyers 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 Tremeirchion valuers.
Toby owned a conversion apartment in Tremeirchion being sold with a lease of fraction over 59 years unexpired. Toby informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr U André was assigned a lease of a garden apartment in Tremeirchion in August 2008. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative homes in Tremeirchion with an extended lease were valued about £245,000. The mid-range ground rent payable was £45 invoiced yearly. The lease terminated on 1 September 2093. Given that there were 68 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr Eliot Green owned a one bedroom apartment in Tremeirchion in January 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Tremeirchion with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2104. Having 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.