Pentre leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most 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 must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Pentre leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Pentre with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
After unsuccessful correspondence with the freeholder of her leasehold flat in Pentre, Holly started the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction completed in October 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. K Gómez took over the lease of a garden flat in Pentre in February 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Pentre with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 24 October 2077. Given that there were 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
In 2012 we were called by Mr N Morgan who, having was assigned a lease of a newly refurbished flat in Pentre in August 2005. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Pentre with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished on 19 November 2097. Having 72 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus costs.