It’s a harsh truth that a Pentwyn residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Pentwyn property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. Most flat owners in Pentwyn will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Pentwyn with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Pentwyn can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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.
During the course of the last few months Jonathan, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Pentwyn. In buying his flat two decades ago, the length of the lease was of minimal importance. Luckily, he recognised he needed to take action soon on Extending the lease. Jonathan arranged for a lease extension just under the wire last June. Jonathan and the freeholder ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,050.
Mr E Gómez moved into a garden apartment in Pentwyn in October 2003. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Pentwyn with an extended lease were valued around £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease end date was in 2092. Considering the 66 years outstanding we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.
Last Spring we were phoned by Mrs V Bennett , who moved into a one bedroom flat in Pentwyn in August 1999. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Pentwyn with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 27 January 2081. Taking into account 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.