There is no doubt about it a leasehold flat or house in Pentwyn is a wasting asset as a result of the shortening lease. If the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty 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 main logic behind why you should extend the lease sooner rather than later. Most flat owners in Pentwyn will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Pentwyn can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Pentwyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Felix, came critically close to the 80-year mark with the lease on his one bedroom flat in Pentwyn. Having purchased his flat two decades ago, the length of the lease was of no concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Felix arranged for a lease extension at the eleventh hour in September. Felix and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he had missed the deadline, the amount would have escalated by at least £900.
Last Winter we were approach by Mr David López , who purchased a recently refurbished flat in Pentwyn in November 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Pentwyn with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 billed monthly. The lease finished on 25 April 2080. Considering the 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus legals.
Mr and Mrs. M Mason was assigned a lease of a ground floor flat in Pentwyn in June 2004. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable flats in Pentwyn with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was in 2100. Taking into account 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.