The closer a domestic lease in Treorchy nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said 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 reason why you should extend the lease without delay. The majority of flat owners in Treorchy will qualify for this right; nevertheless a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Treorchy leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her first floor flat in Treorchy, Charlotte started the lease extension process as the eighty year mark was fast approaching. The lease extension was finalised in May 2011. The landlord’s fees were kept to an absolute minimum.
Dr Jacob Morris moved into a first floor apartment in Treorchy in March 2004. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative premises in Treorchy with 100 year plus lease were valued around £225,400. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2090. Given that there were 64 years outstanding we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including costs.
Dr T James purchased a basement apartment in Treorchy in June 2007. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Treorchy with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2101. Given that there were 75 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.