For those whose Pentre home is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Pentre with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Pentre can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
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 year Jonathan, came dangerously near to the 80-year mark with the lease on his ground floor apartment in Pentre. Having bought his home 18 years previously, the length of the lease was of little interest. by good luck, he became aware that he needed to take action soon on Extending the lease. Jonathan was able to extend his lease just under the wire in January. Jonathan and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If the lease had slid below eighty years, the premium would have increased by at least £900.
Dr N González was assigned a lease of a basement flat in Pentre in June 1999. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Pentre with a long lease were valued about £171,800. The mid-range ground rent payable was £55 billed annually. The lease terminated on 13 February 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.
Last Spring we were e-mailed by Mr T Bailey , who owned a newly refurbished flat in Pentre in February 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Pentre with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 16 March 2096. Taking into account 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.