Pentwyn residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold properties in Pentwyn with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Pentwyn,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pentwyn valuers.
After lengthy discussions with the freeholder of her first floor apartment in Pentwyn, Sarah commenced the lease extension process as the 80 year mark was fast approaching. The transaction completed in June 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. Y Young purchased a studio apartment in Pentwyn in March 2001. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative properties in Pentwyn with an extended lease were worth £171,800. The average amount of ground rent was £55 collected monthly. The lease concluded in 2073. Taking into account 50 years left we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including expenses.
In 2012 we were contacted by Mr and Mrs. G Sharif who, having owned a garden apartment in Pentwyn in November 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Pentwyn with a long lease were worth £280,000. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2093. Taking into account 70 years unexpired we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.