It’s an underpublicised truth that a Pontarddulais residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Pontarddulais property prices.Where your lease has approximately ninety years left, you need to 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 lower than 80 years - otherwise a higher premium will be due. Most leasehold owners in Pontarddulais will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Pontarddulais with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Pontarddulais 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 conveyancing solicitor we work with provide it.
William was the the leasehold owner of a 2 bedroom apartment in Pontarddulais being sold with a lease of a few days over 59 years left. William informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were William to exercise his statutory right. William procured expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were phoned by Ms Laura Ramírez who, having moved into a purpose-built flat in Pontarddulais in March 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Pontarddulais with an extended lease were valued around £285,000. The average ground rent payable was £55 billed monthly. The lease termination date was in 2104. Considering the 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Last Summer we were contacted by Mr and Mrs. J Bell , who took over the lease of a ground floor flat in Pontarddulais in March 2005. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable homes in Pontarddulais with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2084. Taking into account 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.