The market value of a leasehold property in Treuddyn depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed well before the 80 year threshold. Current legislation enables Treuddyn qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Treuddyn leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide 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.
Off the back of unsuccessful negotiations with the landlord of her leasehold flat in Treuddyn, Maisie commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was concluded in November 2012. The freeholder’s costs were restricted to less than 550 GBP.
Last Autumn we were phoned by Mrs Grace Vincent , who took over the lease of a recently refurbished flat in Treuddyn in August 2000. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative properties in Treuddyn with 100 year plus lease were valued around £237,600. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 12 May 2092. Given that there were 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.
Mr and Mrs. J Wood was assigned a lease of a newly refurbished flat in Treuddyn in April 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Treuddyn with a long lease were valued around £280,000. The average amount of ground rent was £55 collected annually. The lease terminated on 17 June 2103. Having 78 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.