The market value of Pentwyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| 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. |
Engaging our service will provide you increased control over the value of your Pentwyn leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Hugo, came perilously near to the 80-year mark with the lease on his leasehold apartment in Pentwyn. In buying his flat two decades ago, the unexpired term was of little importance. Fortunately, he realised he needed to take action soon on a lease extension. Hugo was able to extend his lease just in the nick of time last September. Hugo and the freeholder via the management company subsequently agreed on sum of £5,000 . If the lease had descended below 80 years, the sum would have become more exhorbitant by a minimum £1,150.
Last Autumn we were called by Ms R Pérez , who moved into a one bedroom flat in Pentwyn in February 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Pentwyn with a long lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease finished on 13 May 2096. Given that there were 71 years left we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Spring we were contacted by Mr Ryan Howard , who purchased a first floor flat in Pentwyn in March 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Pentwyn with an extended lease were valued around £225,800. The mid-range amount of ground rent was £60 billed annually. The lease expired on 19 April 2085. Considering the 60 years remaining we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.