Pontardawe leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Pontardawe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Pontardawe with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Pontardawe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pontardawe valuers.
Ali owned a conversion apartment in Pontardawe on the market with a lease of fraction over fifty eight years unexpired. Ali on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2014 we were contacted by Dr Francesca Khan who, having was assigned a lease of a first floor flat in Pontardawe in October 2008. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Pontardawe with a long lease were worth £270,000. The average ground rent payable was £55 collected per annum. The lease came to a finish on 7 April 2100. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2011 we were contacted by Mr U Green who, having acquired a garden apartment in Pontardawe in March 1997. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar residencies in Pontardawe with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed annually. The lease concluded on 9 February 2080. Having 54 years unexpired we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.