The market value of Tremeirchion leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than eighty years
Leasehold residencies in Tremeirchion with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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.
Aiden was the the leasehold proprietor of a 2 bedroom flat in Tremeirchion being marketed with a lease of a little over sixty years left. Aiden informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last month we were contacted by Mrs G Petit , who completed a one bedroom flat in Tremeirchion in March 1996. The question was if we could estimate the premium would be to extend the lease by 90 years. Similar premises in Tremeirchion with a long lease were valued about £200,800. The average ground rent payable was £65 billed yearly. The lease lapsed in 2086. Considering the 60 years unexpired we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including professional charges.
In 2009 we were approached by Dr K Gómez who, having purchased a garden flat in Tremeirchion in May 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Tremeirchion with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2097. Taking into account 71 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.