The re-sale value of a leasehold property in Pentraeth depends on how many years the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year threshold. Current legislation enables Pentraeth qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Pentraeth with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Pentraeth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Aaron, came precariously near to the 80-year mark with the lease on his ground floor apartment in Pentraeth. In buying his flat two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Aaron was able to extend his lease just under the wire in April. Aaron and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £1,000.
Last Autumn we were contacted by Mr and Mrs. O Moore , who completed a one bedroom apartment in Pentraeth in May 2005. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Pentraeth with an extended lease were in the region of £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2094. Having 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last May we were e-mailed by Dr H Morel , who was assigned a lease of a ground floor flat in Pentraeth in March 2000. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Pentraeth with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 24 September 2105. Having 79 years outstanding we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.