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 cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
Leasehold premises in Tremeirchion with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The lawyers that we work with undertake Tremeirchion lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Aarav was the the leasehold proprietor of a studio flat in Tremeirchion on the market with a lease of fraction over 59 years outstanding. Aarav informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Aarav to invoke his statutory right. Aarav procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2012 we were contacted by Dr Mia Harris who, having bought a purpose-built apartment in Tremeirchion in January 1995. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in Tremeirchion with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 collected per annum. The lease end date was in 2104. Taking into account 79 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.
Last month we were approach by Ms W Garcia , who bought a first floor apartment in Tremeirchion in July 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Tremeirchion with a long lease were worth £193,400. The average ground rent payable was £65 collected per annum. The lease elapsed in 2084. Given that there were 59 years remaining we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.