Ponthir leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Ponthir enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ponthir you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Ponthir with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Ponthir,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ponthir valuers.
Ali was the the leasehold owner of a 2 bedroom apartment in Ponthir on the market with a lease of a few days over 61 years left. Ali informally approached his freeholder being 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 on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr A Mitchell who, having owned a newly refurbished apartment in Ponthir in November 1999. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Ponthir with a long lease were in the region of £280,000. The average ground rent payable was £55 collected quarterly. The lease ran out on 19 September 2104. Taking into account 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Dr B Sánchez acquired a ground floor apartment in Ponthir in May 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Ponthir with a long lease were in the region of £191,000. The average amount of ground rent was £65 collected yearly. The lease ended in 2084. Given that there were 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of costs.