Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Tremeirchion. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Tremeirchion have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful attention before delaying your Tremeirchion lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| 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. |
| 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. |
| Yorkshire Building Society | 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. |
The lawyers 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 lawyer we work with provide it.
Ali owned a 2 bedroom flat in Tremeirchion being marketed with a lease of just over fifty eight years outstanding. Ali informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Mrs Sophie Díaz completed a basement apartment in Tremeirchion in May 2001. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar properties in Tremeirchion with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2088. Considering the 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.
Last Spring we were contacted by Dr C Walker , who acquired a ground floor flat in Tremeirchion in January 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar homes in Tremeirchion with a long lease were in the region of £260,000. The average amount of ground rent was £50 billed quarterly. The lease termination date was in 2099. Given that there were 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.