Trentham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Trentham will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Trentham with over 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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Trentham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Sam was the the leasehold proprietor of a high value flat in Trentham being sold with a lease of a little over fifty eight years outstanding. Sam informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Spring we were phoned by Mr K Wright , who was assigned a lease of a first floor flat in Trentham in September 2007. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Trentham with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed every twelve months. The lease ran out in 2096. Having 71 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Last July we were called by Mrs Naomi Stewart , who owned a basement flat in Trentham in October 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Trentham with an extended lease were valued about £230,800. The average amount of ground rent was £60 invoiced per annum. The lease concluded on 15 November 2085. Considering the 60 years remaining we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of fees.