The market value of a leasehold property in Pantymwyn is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year cut off point. Leasehold Reform legislation enables Pantymwyn qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Pantymwyn 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Pantymwyn can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pantymwyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the freeholder of her purpose-built apartment in Pantymwyn, Kate commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was concluded in January 2010. The landlord’s costs were restricted to under 700 GBP.
In 2010 we were contacted by Ms U Johnson who, having bought a studio apartment in Pantymwyn in September 2000. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar properties in Pantymwyn with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2106. Having 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Dr Eli Ward purchased a first floor apartment in Pantymwyn in October 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Pantymwyn with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed annually. The lease termination date was on 10 September 2095. Given that there were 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.