Tremeirchion leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Tremeirchion tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Tremeirchion you really ought to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Tremeirchion flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Tremeirchion with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Tremeirchion lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of unsuccessful discussions with the landlord of her one bedroom flat in Tremeirchion, Hollie initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work was concluded in August 2006. The freeholder’s costs were negotiated to less than six hundred GBP.
Mrs T Hernández took over the lease of a garden flat in Tremeirchion in March 1997. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable homes in Tremeirchion with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced yearly. The lease ended on 23 June 2096. Having 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2011 we were called by Dr Blake González who, having was assigned a lease of a first floor apartment in Tremeirchion in April 1998. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Tremeirchion with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 billed yearly. The lease ran out in 2076. Given that there were 51 years unexpired we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of expenses.