On the balance of probabilities where you own a flat in Ponthir you actually own a long leasehold interest over your property
Leasehold residencies in Ponthir with in excess of one hundred years outstanding 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ponthir,the lease extension lawyers that we work with will always be prepared 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.
After protracted negotiations with the landlord of her ground floor apartment in Ponthir, Rachael initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction was concluded in February 2008. The landlord’s costs were negotiated to less than 650 GBP.
Ms Eleanor Fournier completed a purpose-built apartment in Ponthir in January 1995. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Identical homes in Ponthir with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease terminated in 2097. Taking into account 71 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last Spring we were approach by Mr and Mrs. C Lefèvre , who bought a one bedroom flat in Ponthir in July 2006. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Ponthir with an extended lease were worth £254,200. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.