Pentraeth leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Pentraeth will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Pentraeth can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Pentraeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a high value flat in Pentraeth on the market with a lease of a little over sixty years outstanding. Riley informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last Spring we were e-mailed by Mr and Mrs. L Morris , who owned a one bedroom apartment in Pentraeth in February 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Pentraeth with an extended lease were in the region of £208,200. The average amount of ground rent was £65 invoiced per annum. The lease came to a finish on 11 January 2087. Taking into account 61 years as a residual term we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including legals.
In 2009 we were contacted by Mr C Sharif who, having was assigned a lease of a first floor flat in Pentraeth in August 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Pentraeth with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected annually. The lease ended in 2098. Given that there were 72 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.