The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Tremeirchion may extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Tremeirchion lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay for a lease extension.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 landlord 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 experience and the close ties they enjoy with Tremeirchion valuers.
Felix was the the leasehold proprietor of a studio apartment in Tremeirchion being sold with a lease of a few days over 59 years left. Felix informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree 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 Felix to exercise his statutory right. Felix procured expert advice and secured satisfactory deal informally and readily saleable.
Last Winter we were called by Mr and Mrs. W Wright , who bought a ground floor flat in Tremeirchion in January 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Tremeirchion with a long lease were worth £261,600. The average amount of ground rent was £60 invoiced per annum. The lease terminated in 2078. Having 52 years left we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 not including costs.
Last April we were e-mailed by Mr and Mrs. P Michel , who was assigned a lease of a basement flat in Tremeirchion in July 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Tremeirchion with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced per annum. The lease finished on 10 April 2089. Having 63 years left we calculated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including fees.