The re-sale value of a leasehold property in Pontcanna depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised ahead of the 80 year cut off point. Leasehold Reform legislation enables Pontcanna qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Pontcanna with over one hundred years left 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Pontcanna 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.
Last Autumn Finley, came precariously near to the 80-year mark with the lease on his garden apartment in Pontcanna. Having purchased his flat two decades ago, the lease term was of little relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Finley extended the lease at the eleventh hour last August. Finley and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had dropped below eighty years, the price would have gone up by a minimum £925.
Last Summer we were e-mailed by Dr J Laurent , who purchased a one bedroom apartment in Pontcanna in February 2011. We are asked if we could estimate the price could be for a 90 year lease extension. Identical flats in Pontcanna with a long lease were in the region of £290,000. The average amount of ground rent was £60 billed annually. The lease ended in 2106. Considering the 80 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
Mr and Mrs. O Moore was assigned a lease of a garden flat in Pontcanna in May 1997. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative properties in Pontcanna with a long lease were in the region of £200,800. The average ground rent payable was £65 billed yearly. The lease expired in 2086. Taking into account 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.