The closer a residential lease in Pentre nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Pentre will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Pentre can be a difficult process. We recommend you get professional help from a lawyer 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 in-depth market knowledge dealing with Pentre lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Gabriel, came critically close to the eighty-year mark with the lease on his garden flat in Pentre. Having purchased his home two decades ago, the lease term was of no bearing. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. Gabriel arranged for a lease extension just under the wire last April. Gabriel and the landlord in the end agreed on the final figure of £5,000 . If the lease had gone lower than 80 years, the amount would have escalated by a minimum £1,000.
In 2011 we were called by Mr and Mrs. D Bennett who, having bought a one bedroom flat in Pentre in November 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Pentre with an extended lease were valued around £285,000. The average amount of ground rent was £45 billed every twelve months. The lease expired in 2096. Taking into account 71 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Winter we were approach by Dr G Flores , who took over the lease of a purpose-built apartment in Pentre in October 2007. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Pentre with a long lease were valued about £225,800. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2085. Considering the 60 years left we estimated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 not including fees.