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 your lease gets more expensive. It is the case that most Pentyrch tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Pentyrch you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Pentyrch with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Pentyrch can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge dealing with Pentyrch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli was the the leasehold owner of a 2 bedroom flat in Pentyrch on the market with a lease of a little over fifty eight years left. Eli on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Dr Mia Nguyen who, having took over the lease of a first floor apartment in Pentyrch in June 1996. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Pentyrch with an extended lease were valued about £265,000. The average ground rent payable was £55 collected every twelve months. The lease expired in 2099. Given that there were 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. L Clarke moved into a one bedroom flat in Pentyrch in November 1998. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical flats in Pentyrch with an extended lease were in the region of £166,400. The average amount of ground rent was £60 invoiced monthly. The lease ended on 27 July 2079. Given that there were 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.