Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Pencoed. Clearly, the length of lease left shortens over time. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Pencoed have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Pencoed lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Pencoed can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 a wealth of experience dealing with Pencoed lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander was the the leasehold proprietor of a 2 bedroom apartment in Pencoed on the market with a lease of a little over sixty years left. Alexander informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr Elijah Williams purchased a garden flat in Pencoed in August 2003. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Pencoed with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2100. Given that there were 75 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Last month we were approach by Dr P Lewis , who acquired a recently refurbished flat in Pencoed in February 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable flats in Pencoed with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced annually. The lease came to a finish on 19 June 2080. Given that there were 55 years remaining we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.