Unfortunately that a Pentraeth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Pentraeth property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Pentraeth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Pentraeth with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Pentraeth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Nathan, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Pentraeth. In buying his property 19 years previously, the length of the lease was of minimal relevance. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Nathan extended the lease just in the nick of time last August. Nathan and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had fallen to less than 80 years, the premium would have become more costly by at least £950.
In 2009 we were called by Mr and Mrs. S Khan who, having completed a purpose-built apartment in Pentraeth in March 2010. The question was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Pentraeth with 100 year plus lease were valued around £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2091. Given that there were 66 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last year we were contacted by Mr T Morel , who took over the lease of a studio apartment in Pentraeth in November 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Similar homes in Pentraeth with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease finished in 2102. Considering the 77 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.