Pentre leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Pentre enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pentre you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Pentre leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
The lawyers that we work with procure Pentre lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Spring Zachary, started to get near to the eighty-year threshold with the lease on his first floor apartment in Pentre. In buying his home two decades ago, the lease term was of minimal relevance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Zachary was able to extend his lease just under the wire last September. Zachary and the freeholder in the end settled on sum of £5,500 . If he not met the deadline, the figure would have gone up by a minimum £1,150.
Dr P Sánchez took over the lease of a studio apartment in Pentre in June 1998. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative homes in Pentre with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected monthly. The lease finished on 28 July 2081. Taking into account 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2011 we were e-mailed by Mrs Y Alexander who, having took over the lease of a basement apartment in Pentre in April 2006. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Pentre with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2101. Taking into account 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.