Trentham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Trentham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Trentham you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Trentham 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Trentham can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Trentham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Harry, came dangerously near to the 80-year mark with the lease on his basement flat in Trentham. Having purchased his home 19 years previously, the length of the lease was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Harry extended the lease just ahead of time in April. Harry and the landlord in the end settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £875.
Mrs O Evans completed a garden apartment in Trentham in November 2000. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Trentham with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced monthly. The lease lapsed on 14 March 2084. Considering the 59 years as a residual term we approximated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
Last Winter we were called by Mr and Mrs. U López , who was assigned a lease of a first floor flat in Trentham in October 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Trentham with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed in 2104. Considering the 79 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.