Pentyrch leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Pentyrch enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pentyrch you should investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Pentyrch flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
| 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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Regardless of whether you are a tenant or a freeholder in Pentyrch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pentyrch valuers.
Noah owned a high value flat in Pentyrch on the market with a lease of a few days over fifty eight years left. Noah on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2011 we were phoned by Mrs Erin Flores who, having purchased a studio apartment in Pentyrch in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Pentyrch with an extended lease were in the region of £227,800. The average ground rent payable was £45 collected yearly. The lease concluded in 2087. Having 65 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Last Christmas we were approach by Dr E Ali , who owned a one bedroom flat in Pentyrch in October 2001. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical properties in Pentyrch with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 collected yearly. The lease expired on 8 March 2098. Given that there were 76 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.