The re-sale value of a leasehold property in Pontardawe is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be concluded ahead of the eighty year mark. Leasehold Reform legislation enables Pontardawe qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 conveyancers that we work with procure Pontardawe 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.
In recent months Zachary, started to get close to the eighty-year threshold with the lease on his first floor flat in Pontardawe. In buying his property twenty years previously, the lease term was of minimal significance. Thankfully, he became aware that he needed to take action soon on a lease extension. Zachary was able to extend his lease at the eleventh hour last July. Zachary and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £850.
In 2012 we were approached by Dr P Sharif who, having acquired a one bedroom flat in Pontardawe in April 2010. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical properties in Pontardawe with 100 year plus lease were valued about £173,800. The average ground rent payable was £65 billed per annum. The lease termination date was on 4 May 2081. Having 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
In 2011 we were approached by Dr Y Bell who, having bought a one bedroom apartment in Pontardawe in October 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical premises in Pontardawe with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed annually. The lease expired on 23 January 2092. Considering the 66 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.