As the the remaining lease term of a Pencoed domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Pencoed will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Pencoed with in excess of 100 years outstanding on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Pencoed 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.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in Pencoed, Jodie started the lease extension process as the 80 year deadline was fast approaching. The transaction completed in November 2009. The landlord’s charges were kept to an absolute minimum.
Last Spring we were approach by Mrs Sophia Davis , who moved into a basement flat in Pencoed in January 2010. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Pencoed with a long lease were in the region of £186,000. The average ground rent payable was £65 collected annually. The lease finished in 2083. Taking into account 58 years left we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including expenses.
Last January we were phoned by Ms B Phillips , who was assigned a lease of a one bedroom apartment in Pencoed in May 2008. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in Pencoed with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed in 2094. Taking into account 69 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.