When it comes to residential leasehold premises in Treuddyn, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years left. Leasehold owners in Treuddyn with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Treuddyn,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Treuddyn valuers.
Arthur was the the leasehold proprietor of a 2 bedroom apartment in Treuddyn on the market with a lease of fraction over sixty years left. Arthur on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr Jonathan Nguyen , who acquired a garden flat in Treuddyn in October 2009. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative flats in Treuddyn with an extended lease were worth £260,000. The average ground rent payable was £50 collected every twelve months. The lease terminated on 17 January 2097. Considering the 72 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2010 we were approached by Mr and Mrs. T Walker who, having purchased a one bedroom flat in Treuddyn in February 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Treuddyn with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 invoiced monthly. The lease elapsed on 5 June 2077. Considering the 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £41,800 and £48,400 plus professional charges.