Pencoed leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Pencoed tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Pencoed you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Pencoed with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Lease extensions in Pencoed can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Pencoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie was the the leasehold owner of a 2 bedroom apartment in Pencoed being sold with a lease of a little over 61 years outstanding. Charlie informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Autumn we were contacted by Mr and Mrs. W Sharif , who was assigned a lease of a first floor apartment in Pencoed in July 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Pencoed with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2105. Having 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
In 2012 we were approached by Mr and Mrs. G Rodríguez who, having bought a garden apartment in Pencoed in June 2006. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar premises in Pencoed with an extended lease were worth £198,400. The average ground rent payable was £65 billed per annum. The lease ended in 2085. Having 59 years remaining we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.