There is no doubt about it a leasehold flat or house in Trentham is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Trentham will meet the qualifying criteria; however a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Using our service gives you better 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 want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Teddy, came dangerously close to the 80-year mark with the lease on his first floor flat in Trentham. Having bought his flat 18 years previously, the length of the lease was of minimal bearing. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Teddy extended the lease just under the wire last July. Teddy and the landlord in the end settled on an amount of £6,000 . If the lease had slipped below eighty years, the figure would have gone up by at least £1,000.
Last October we were e-mailed by Mrs Sian Robinson , who took over the lease of a newly refurbished flat in Trentham in August 1998. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative flats in Trentham with a long lease were in the region of £265,200. The average ground rent payable was £65 collected quarterly. The lease lapsed in 2091. Having 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus fees.
Last year we were phoned by Mr Rory Harris , who completed a first floor apartment in Trentham in July 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable premises in Trentham with an extended lease were in the region of £198,800. The average amount of ground rent was £55 billed per annum. The lease concluded in 2080. Considering the 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.