As the the remaining lease term of a Pontypool residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Many flat owners in Pontypool will qualify for this right; that being said a conveyancer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Pontypool with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Pontypool 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the freeholder of her studio apartment in Pontypool, Rachael initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in May 2010. The landlord’s charges were kept to an absolute minimum.
Mrs O Rogers acquired a one bedroom apartment in Pontypool in February 2006. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Identical homes in Pontypool with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 21 June 2103. Taking into account 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 plus fees.
Last Christmas we were called by Mr Andrew Roux , who completed a newly refurbished apartment in Pontypool in August 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative residencies in Pontypool with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 collected yearly. The lease finished on 10 June 2092. Taking into account 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of legals.