When it comes to domestic leasehold property in Treuddyn, you are actually buying a right to reside in a property for a set period of time. 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 think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Treuddyn with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has fewer than eighty years remaining, under the relevant Act the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Treuddyn with over 100 years outstanding on the lease are often regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
The conveyancing solicitors that we work with undertake Treuddyn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of lengthy discussions with the landlord of her basement apartment in Treuddyn, Isabel initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in January 2009. The freeholder’s fees were restricted to below 600 pounds.
Last Autumn we were phoned by Mr and Mrs. G Walker , who moved into a basement apartment in Treuddyn in May 1998. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar flats in Treuddyn with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 7 April 2085. Taking into account 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.
In 2013 we were phoned by Mrs H Ward who, having bought a basement apartment in Treuddyn in February 2003. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Treuddyn with an extended lease were valued about £255,000. The average ground rent payable was £50 billed per annum. The lease lapsed on 2 June 2096. Given that there were 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.