With a domestic leasehold property in Tremeirchion, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Tremeirchion with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Tremeirchion,the lease extension solicitors that we work with will always be prepared 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.
Michael owned a high value apartment in Tremeirchion being sold with a lease of a little over 59 years outstanding. Michael informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Spring we were phoned by Mrs S Moreau , who completed a basement flat in Tremeirchion in February 1996. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar properties in Tremeirchion with an extended lease were valued about £264,000. The mid-range ground rent payable was £60 billed per annum. The lease terminated in 2078. Given that there were 53 years left we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including costs.
Last Spring we were approach by Mrs Katie Michel , who bought a ground floor flat in Tremeirchion in October 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Tremeirchion with 100 year plus lease were valued around £220,400. The average ground rent payable was £45 billed every twelve months. The lease lapsed on 20 July 2089. Given that there were 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.