Pentraeth leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Pentraeth will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Pentraeth can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience procuring Pentraeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Ben, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Pentraeth. Having purchased his home 18 years previously, the length of the lease was of little bearing. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Ben was able to extend his lease just under the wire in March. Ben and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,000.
In 2011 we were phoned by Dr T Wood who, having moved into a basement flat in Pentraeth in May 2007. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar premises in Pentraeth with an extended lease were worth £275,000. The average amount of ground rent was £55 invoiced per annum. The lease elapsed on 14 September 2102. Having 76 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Ms Harriet Johnson moved into a garden flat in Pentraeth in April 2011. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar properties in Pentraeth with a long lease were worth £176,200. The average amount of ground rent was £65 billed monthly. The lease ran out in 2082. Considering the 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.