Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Tremeirchion. Inevitably, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Tremeirchion have the legal entitlement to extend the lease for a further 90 years under statute. Please give due attention before delaying your Tremeirchion lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Tremeirchion with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 experience and the close ties they enjoy with Tremeirchion valuers.
Toby owned a 2 bedroom flat in Tremeirchion on the market with a lease of a little over fifty eight years unexpired. Toby informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Toby to exercise his statutory right. Toby procured expert advice and secured satisfactory resolution informally and sell the property.
In 2013 we were called by Ms Molly Laurent who, having took over the lease of a basement apartment in Tremeirchion in January 1997. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable premises in Tremeirchion with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2100. Taking into account 74 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2012 we were contacted by Mr and Mrs. C Gómez who, having bought a garden apartment in Tremeirchion in October 1997. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Tremeirchion with an extended lease were valued around £166,400. The average amount of ground rent was £60 billed per annum. The lease elapsed on 24 February 2080. Given that there were 54 years remaining we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.