As the length of the unexpired term of a Pontarddulais residential lease decreases so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years left 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 sooner than later. The majority of flat owners in Pontarddulais will qualify for this right; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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.
Callum was the the leasehold owner of a conversion apartment in Pontarddulais on the market with a lease of a few days over 72 years left. Callum informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Ms P Murphy acquired a purpose-built apartment in Pontarddulais in June 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Pontarddulais with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 17 September 2089. Given that there were 64 years remaining we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including costs.
Mr and Mrs. A Stewart took over the lease of a one bedroom apartment in Pontarddulais in October 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Pontarddulais with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed in 2100. Considering the 75 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.