Unfortunately that a Pentyrch residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Pentyrch property prices.Where your lease has approximately ninety years left, you should start considering 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 falls below 80 years - otherwise a higher amount will be due. Most leasehold owners in Pentyrch will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Pentyrch can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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.
Last October Jonathan, came critically near to the 80-year threshold with the lease on his purpose- built flat in Pentyrch. In buying his home twenty years ago, the length of the lease was of little interest. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Jonathan arranged for a lease extension at the eleventh hour in March. Jonathan and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,025.
In 2012 we were called by Mr T Brown who, having bought a ground floor apartment in Pentyrch in September 2007. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Pentyrch with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2083. Considering the 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
Dr F Bonnet purchased a basement apartment in Pentyrch in January 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Pentyrch with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed in 2094. Having 68 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.