The market value of Pentre leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Pentre,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pentre valuers.
Kian owned a 2 bedroom apartment in Pentre being marketed with a lease of fraction over 72 years outstanding. Kian informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were called by Mr and Mrs. W Wright who, having took over the lease of a purpose-built apartment in Pentre in March 2009. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Pentre with a long lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 3 June 2089. Given that there were 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
Last Winter we were approach by Dr D Gómez , who was assigned a lease of a basement flat in Pentre in October 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Pentre with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 invoiced quarterly. The lease ran out on 22 November 2078. Having 53 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.