On the balance of probabilities if you own a flat in Pentwyn you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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 |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Pentwyn leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her one bedroom flat in Pentwyn, Ellen commenced the lease extension process as the 80 year mark was quickly coming. The lease extension completed in January 2010. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Dr Grace Gray , who took over the lease of a one bedroom flat in Pentwyn in January 2006. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Pentwyn with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease termination date was on 15 March 2079. Given that there were 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
In 2009 we were contacted by Dr Laura Bennett who, having purchased a ground floor apartment in Pentwyn in June 1998. The question was if we could estimate the price would be to extend the lease by ninety years. Comparable flats in Pentwyn with an extended lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease termination date was in 2099. Considering the 74 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.