The market value of a leasehold property in Treorchy is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year cut off point. Current legislation entitles Treorchy qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Treorchy with in excess of 100 years outstanding 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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 |
Retaining our service gives you enhanced control over the value of your Treorchy leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her garden flat in Treorchy, Freya initiated the lease extension process as the 80 year deadline was swiftly advancing. The lease extension was finalised in May 2013. The freeholder’s charges were restricted to a tad over 700 GBP.
In 2012 we were e-mailed by Dr Hugo Richardson who, having completed a ground floor flat in Treorchy in January 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar homes in Treorchy with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2097. Considering the 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
In 2012 we were approached by Dr Edward Hernández who, having took over the lease of a purpose-built flat in Treorchy in May 2012. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Comparable flats in Treorchy with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed in 2077. Considering the 51 years remaining we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.