Tremeirchion leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Tremeirchion will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Tremeirchion with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaing 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 |
| 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 prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tremeirchion valuers.
Jude owned a 2 bedroom apartment in Tremeirchion being sold with a lease of a little over sixty years left. Jude informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr R James took over the lease of a recently refurbished flat in Tremeirchion in August 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Tremeirchion with an extended lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease finished on 8 October 2087. Given that there were 66 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Autumn we were approach by Mr and Mrs. A Wilson , who acquired a ground floor flat in Tremeirchion in October 1998. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Tremeirchion with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease expired in 2098. Given that there were 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.