With a domestic leasehold premises in Ponthir, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Anyone in Ponthir with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has under eighty years outstanding, under the current legislation the landlord can calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Ponthir with in excess of 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Ponthir leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold owner of a 2 bedroom apartment in Ponthir being sold with a lease of just over 59 years unexpired. Finley on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last Spring we were approach by Mr and Mrs. D Thompson , who bought a one bedroom apartment in Ponthir in January 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar premises in Ponthir with an extended lease were in the region of £225,400. The average amount of ground rent was £45 billed quarterly. The lease finished in 2089. Taking into account 64 years outstanding we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including professional charges.
Last June we were approach by Dr H Rivera , who took over the lease of a first floor apartment in Ponthir in August 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Ponthir with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2100. Considering the 75 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.