When it comes to domestic leasehold premises in Tremeirchion, you are in fact renting it for a certain period of time. These days flat leases are usually granted 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 number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than 80 years left. Residents in Tremeirchion with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has under eighty years left, under the current legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Tremeirchion with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying 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. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Tremeirchion leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jamie, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Tremeirchion. Having purchased his flat two decades ago, the length of the lease was of little interest. Luckily, he became aware that he needed to take action soon on Extending the lease. Jamie was able to extend his lease just in the nick of time in January. Jamie and the landlord in the end agreed on an amount of £5,500 . If he had missed the deadline, the amount would have become more costly by at least £1,050.
Mr and Mrs. G Martinez owned a first floor flat in Tremeirchion in January 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Tremeirchion with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 collected quarterly. The lease expired on 6 May 2081. Taking into account 55 years unexpired we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
In 2013 we were e-mailed by Mr and Mrs. T García who, having purchased a one bedroom apartment in Tremeirchion in February 1995. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Tremeirchion with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected monthly. The lease terminated on 3 July 2092. Having 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.