The market value of a leasehold property in Pentyrch is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation enables Pentyrch qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder in Pentyrch,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pentyrch valuers.
Last year Alfie, started to get near to the eighty-year mark with the lease on his studio apartment in Pentyrch. In buying his home 19 years ago, the lease term was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Alfie arranged for a lease extension just under the wire in January. Alfie and the freeholder via the management company eventually settled on sum of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £975.
In 2014 we were e-mailed by Dr D Hernández who, having purchased a garden apartment in Pentyrch in May 2006. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative homes in Pentyrch with a long lease were valued about £255,000. The average amount of ground rent was £50 billed monthly. The lease expiry date was on 28 February 2096. Given that there were 70 years remaining we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus fees.
In 2011 we were phoned by Mrs L Nelson who, having owned a one bedroom apartment in Pentyrch in May 2011. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative homes in Pentyrch with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected per annum. The lease terminated on 13 February 2076. Given that there were 50 years outstanding we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of expenses.