The market value of Pontllanfraith leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is below than eighty years
Leasehold residencies in Pontllanfraith with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Using our service will provide you better control over the value of your Pontllanfraith leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a 2 bedroom flat in Pontllanfraith on the market with a lease of just over 59 years remaining. Jason informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2011 we were phoned by Mrs Rebecca King who, having completed a first floor flat in Pontllanfraith in April 1996. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar flats in Pontllanfraith with an extended lease were worth £265,200. The average ground rent payable was £65 invoiced per annum. The lease finished in 2091. Taking into account 66 years left we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of fees.
In 2014 we were approached by Ms Sian Parker who, having acquired a garden flat in Pontllanfraith in June 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Pontllanfraith with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed yearly. The lease termination date was on 13 March 2080. Considering the 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.