The only way is down when it comes to Pencoed lease terms. Pencoed properties that have a lease term shorter than eighty years will reduce in market price even faster, and the cost to extend your lease will go up.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service gives you increased control over the value of your Pencoed leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her garden flat in Pencoed, Olivia commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was concluded in January 2013. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr Luca Adams who, having acquired a first floor apartment in Pencoed in August 2001. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparative homes in Pencoed with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2092. Taking into account 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2014 we were contacted by Mr Harvey Thompson who, having completed a one bedroom flat in Pencoed in February 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar flats in Pencoed with a long lease were valued about £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed on 24 July 2103. Given that there were 79 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.