It’s an underpublicised certainty that a Pantymwyn residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Pantymwyn property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Pantymwyn will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Pantymwyn with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Coventry Building Society | 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. |
| 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. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her studio flat in Pantymwyn, Charlotte started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension completed in January 2007. The landlord’s costs were kept to an absolute minimum.
In 2009 we were approached by Mrs M Cooper who, having owned a one bedroom flat in Pantymwyn in September 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Pantymwyn with a long lease were worth £260,200. The average amount of ground rent was £65 billed quarterly. The lease terminated on 27 August 2091. Taking into account 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus professional charges.
Dr V Rivera completed a garden flat in Pantymwyn in January 2000. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical flats in Pantymwyn with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected per annum. The lease finished on 15 September 2080. Given that there were 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.