Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Pantymwyn. Inevitably, the length of lease left reduces over time. This is often overlooked and only becomes a problem when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Pantymwyn have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give due attention before delaying your Pantymwyn lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Pantymwyn with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Pantymwyn 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.
Muhammad owned a conversion apartment in Pantymwyn being marketed with a lease of a little over sixty years left. Muhammad informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
In 2014 we were approached by Mr and Mrs. R Mercier who, having owned a garden apartment in Pantymwyn in August 2011. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Pantymwyn with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2080. Having 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.
Last August we were contacted by Mr and Mrs. H Nelson , who acquired a one bedroom flat in Pantymwyn in March 2005. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Pantymwyn with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected quarterly. The lease lapsed in 2100. Given that there were 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.