Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Pentraeth. Inevitably, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Pentraeth have the right to extend the lease for a further ninety years in accordance with statute. You should give careful consideration before delaying your Pentraeth lease extension. Holding off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Pentraeth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Finley, started to get near to the eighty-year mark with the lease on his studio flat in Pentraeth. Having purchased his property twenty years previously, the lease term was of minimal importance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Finley arranged for a lease extension just under the wire last April. Finley and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he not met the deadline, the figure would have increased by a minimum £900.
Last October we were e-mailed by Mr and Mrs. N Walker , who completed a one bedroom apartment in Pentraeth in July 2008. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar premises in Pentraeth with an extended lease were in the region of £290,000. The average ground rent payable was £55 invoiced quarterly. The lease expired in 2106. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Mrs Mollie Richardson completed a recently refurbished flat in Pentraeth in May 1998. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar properties in Pentraeth with a long lease were valued about £200,800. The average ground rent payable was £65 invoiced monthly. The lease finished in 2086. Having 60 years left we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.