The market value of a leasehold property in Pencoed depends on how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year cut off point. Statute enables Pencoed qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Pencoed can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 procuring Pencoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie was the the leasehold proprietor of a studio apartment in Pencoed on the market with a lease of just over 61 years outstanding. Alfie informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2009 we were phoned by Mr and Mrs. W Mitchell who, having was assigned a lease of a garden apartment in Pencoed in September 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable properties in Pencoed with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 5 February 2090. Considering the 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.
In 2011 we were e-mailed by Dr A Wright who, having acquired a newly refurbished flat in Pencoed in January 2009. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Pencoed with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish on 28 September 2101. Given that there were 75 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.