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 escalate materialy once the unexpired lease term is less than eighty years
Leasehold premises in Tremeirchion with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Tremeirchion leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her first floor apartment in Tremeirchion, Erin commenced the lease extension process as the 80 year mark was quickly advancing. The transaction was finalised in November 2012. The freeholder’s charges were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. W Hill , who acquired a purpose-built apartment in Tremeirchion in April 2004. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Tremeirchion with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2093. Having 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.
Mr and Mrs. B Allen moved into a garden flat in Tremeirchion in July 2011. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Tremeirchion with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease expired on 8 May 2104. Having 78 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.