There is no doubt about it a leasehold property in Ponthir is a wasting asset as a result of the shortening lease. If the residual term has, over one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Ponthir will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
Retaining our service will provide you increased control over the value of your Ponthir leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Eliot, came seriously close to the 80-year threshold with the lease on his leasehold flat in Ponthir. In buying his flat two decades ago, the lease term was of minimal interest. Luckily, he realised he needed to take action soon on Extending the lease. Eliot extended the lease just under the wire in March. Eliot and the freeholder subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,150.
In 2011 we were called by Mr Lewis Thompson who, having acquired a purpose-built flat in Ponthir in January 2007. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical flats in Ponthir with a long lease were valued around £265,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out in 2099. Taking into account 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2009 we were contacted by Dr C Wright who, having owned a one bedroom apartment in Ponthir in July 1998. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Ponthir with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected per annum. The lease finished on 21 March 2079. Having 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including costs.