With a residential leasehold property in Tremeirchion, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than eighty years remaining. Residents in Tremeirchion with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has less than 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Tremeirchion,the lease extension solicitors that we work with will always be willing 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.
Following protracted correspondence with the landlord of her two bedroom flat in Tremeirchion, Ella commenced the lease extension process just as the lease was nearing the critical 80-year mark. The lease extension completed in March 2012. The landlord’s costs were negotiated to about 600 GBP.
Mr Y Ramírez owned a one bedroom flat in Tremeirchion in September 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Tremeirchion with a long lease were worth £280,000. The average amount of ground rent was £55 invoiced monthly. The lease elapsed on 21 August 2104. Given that there were 78 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last Autumn we were phoned by Mr and Mrs. S Davies , who purchased a one bedroom flat in Tremeirchion in November 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Tremeirchion with an extended lease were worth £186,000. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed on 6 August 2084. Considering the 58 years unexpired we estimated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 plus legals.