Pentraeth 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 the lease becomes more expensive. Most owners of residential leasehold property in Pentraeth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pentraeth you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Pentraeth flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Pentraeth can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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.
Hugo was the the leasehold proprietor of a high value apartment in Pentraeth on the market with a lease of fraction over sixty years outstanding. Hugo on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Autumn we were contacted by Dr V Gunderson , who was assigned a lease of a ground floor apartment in Pentraeth in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Pentraeth with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease terminated in 2080. Taking into account 54 years left we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including fees.
In 2013 we were contacted by Dr Matthew Ramírez who, having owned a newly refurbished flat in Pentraeth in November 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Pentraeth with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 11 November 2091. Taking into account 65 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.