Pentre 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 your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Pentre residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Pentre you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Pentre can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 Pentre 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 Jacob, came critically close to the eighty-year mark with the lease on his first floor apartment in Pentre. Having bought his home twenty years ago, the unexpired term was of no importance. by good luck, he noticed he needed to take steps soon on a lease extension. Jacob extended the lease just under the wire in January. Jacob and the freeholder via the management company ultimately settled on sum of £6,000 . If the lease had dipped below 80 years, the premium would have escalated by a minimum £1,025.
Ms Alice Miller completed a purpose-built apartment in Pentre in January 1998. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Pentre with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 collected annually. The lease expired on 24 February 2101. Taking into account 76 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Mrs S Michel was assigned a lease of a one bedroom flat in Pentre in April 2000. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative flats in Pentre with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed in 2090. Given that there were 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of expenses.