Pontcanna leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Pontcanna will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Pontcanna can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 Pontcanna lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob owned a high value flat in Pontcanna on the market with a lease of a few days over 72 years left. Jacob on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured satisfactory deal informally and sell the property.
Last Summer we were approach by Mr and Mrs. Y Phillips , who purchased a purpose-built apartment in Pontcanna in April 2003. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative flats in Pontcanna with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2096. Having 71 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
In 2012 we were e-mailed by Mr J Nguyen who, having purchased a first floor flat in Pontcanna in June 2000. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Pontcanna with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected per annum. The lease lapsed in 2076. Taking into account 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including costs.