Pencoed leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Pencoed tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Pencoed you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Pencoed,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pencoed valuers.
Half a year ago Sebastian, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Pencoed. In buying his home twenty years previously, the lease term was of no importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Sebastian extended the lease at the eleventh hour last July. Sebastian and the landlord eventually agreed on the final figure of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £875.
Dr I Cooper was assigned a lease of a basement apartment in Pencoed in May 1999. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Pencoed with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 billed monthly. The lease ran out on 10 January 2092. Considering the 67 years left we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.
In 2010 we were e-mailed by Mr and Mrs. K Clarke who, having acquired a recently refurbished apartment in Pencoed in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Pencoed with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease terminated on 7 October 2103. Given that there were 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.