With a domestic leasehold property in Pentwyn, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than eighty years left. Anyone in Pentwyn with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. When a lease has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Pentwyn 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the freeholder of her studio apartment in Pentwyn, Bethan initiated the lease extension process as the 80 year deadline was rapidly nearing. The legal work was concluded in November 2012. The freeholder’s charges were restricted to about 600 GBP.
Last Autumn we were e-mailed by Mrs Morgan Wright , who took over the lease of a first floor flat in Pentwyn in August 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar homes in Pentwyn with an extended lease were valued about £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease end date was in 2084. Considering the 58 years outstanding we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.
Last Spring we were approach by Mr T Johnson , who purchased a newly refurbished flat in Pentwyn in February 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in Pentwyn with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 5 April 2104. Given that there were 78 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.