Why you should start your Ponthir lease extension

Why you should commence your Ponthir lease extension today:

Increase your lease and increase your Ponthir property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Ponthir. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Ponthir have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due consideration before putting off your Ponthir lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension

Ponthir property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders will not issue a mortgage on a short lease

Banks and building societies do not like short residential leases. You are likely to encounter difficulties where you want to sell your flat in Ponthir if the remaining term of your lease is under the criteria set by the majority of banks and building societies. Different lenders have different criteria but on the whole they are looking for a minimum remaining lease term of 65 years.

Why use us for your lease extension in Ponthir?

Regardless of whether you are a tenant or a freeholder in Ponthir,the lease extension experts 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.

Ponthir Lease Extension Case Studies:

Jackson, Ponthir, Torfaen,

Jackson was the the leasehold owner of a 2 bedroom flat in Ponthir on the market with a lease of a little over sixty years remaining. Jackson on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.

Ponthir case:

In 2014 we were phoned by Ms J Hall who, having took over the lease of a one bedroom flat in Ponthir in November 1996. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative residencies in Ponthir with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2080. Having 54 years unexpired we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.

Ponthir case:

Last Spring we were phoned by Mr and Mrs. K Baker , who bought a studio flat in Ponthir in July 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar flats in Ponthir with 100 year plus lease were worth £232,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease terminated in 2091. Having 65 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.