When it comes to residential leasehold property in Tremeirchion, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Tremeirchion with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Tremeirchion,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tremeirchion valuers.
Half a year ago Dylan, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Tremeirchion. In buying his property 18 years ago, the lease term was of little concern. Luckily, he recognised he would soon be paying way over the odds for Extending the lease. Dylan arranged for a lease extension just ahead of time in September. Dylan and the landlord ultimately settled on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by at least £950.
Last Christmas we were contacted by Mr M White , who purchased a garden flat in Tremeirchion in August 2006. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative residencies in Tremeirchion with a long lease were valued around £250,000. The average ground rent payable was £50 billed per annum. The lease end date was on 6 March 2096. Given that there were 70 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. P Murphy bought a garden apartment in Tremeirchion in October 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Similar premises in Tremeirchion with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 invoiced per annum. The lease ran out in 2076. Having 50 years left we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including costs.