The market value of a leasehold property in Trowbridge depends on how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year threshold. Leasehold Reform legislation enables Trowbridge qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Trowbridge with more than one hundred years left 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 premises. In such situations there is often little to be gained by purchasing 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Trowbridge,the lease extension solicitors 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 Trowbridge valuers.
Subsequent to lengthy negotiations with the freeholder of her garden apartment in Trowbridge, Gemma started the lease extension process just as her lease was approaching the critical 80-year mark. The transaction completed in October 2010. The landlord’s costs were negotiated to a tad over 450 GBP.
Last Christmas we were approach by Mr and Mrs. L Gunderson , who was assigned a lease of a recently refurbished flat in Trowbridge in September 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Trowbridge with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 15 June 2096. Having 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Last January we were approach by Ms Leah Taylor , who moved into a one bedroom flat in Trowbridge in September 1998. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in Trowbridge with a long lease were worth £218,400. The average ground rent payable was £60 billed every twelve months. The lease elapsed in 2085. Taking into account 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus professional charges.