When it comes to long leasehold property in Pentyrch, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Residents in Pentyrch with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has below 80 years outstanding, under the current statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Pentyrch with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
The lawyers that we work with procure Pentyrch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following lengthy negotiations with the landlord of her first floor apartment in Pentyrch, Eleanor started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in March 2008. The landlord’s fees were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. J Lefèvre , who purchased a garden flat in Pentyrch in August 2000. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical premises in Pentyrch with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded on 12 July 2095. Given that there were 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last Christmas we were e-mailed by Mr V Lee , who purchased a recently refurbished apartment in Pentyrch in July 2004. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar residencies in Pentyrch with 100 year plus lease were valued around £290,000. The average amount of ground rent was £55 invoiced annually. The lease expiry date was on 26 October 2106. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.