The nearer a domestic lease in Pontardawe nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Pontardawe will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Pontardawe with over one hundred years left on the lease are often 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Pontardawe can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 a wealth of experience procuring Pontardawe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke owned a high value apartment in Pontardawe on the market with a lease of just over sixty years left. Luke on an informal basis approached his landlord a well known London-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 £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr Theo García purchased a purpose-built flat in Pontardawe in May 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Pontardawe with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 invoiced per annum. The lease ran out in 2085. Taking into account 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
Last month we were phoned by Mr Jack Garcia , who was assigned a lease of a first floor apartment in Pontardawe in November 2007. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Pontardawe with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 16 November 2096. Having 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.