The nearer a residential lease in Pontllanfraith gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Pontllanfraith will qualify for this right; however a lawyer will be able to advise whether you are eligible to extend your lease. In limited 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 conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Pontllanfraith,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 experience and the close ties they enjoy with Pontllanfraith valuers.
During the course of the last few months Kian, came precariously near to the 80-year mark with the lease on his studio flat in Pontllanfraith. Having bought his home two decades ago, the lease term was of minimal interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Kian arranged for a lease extension just under the wire in June. Kian and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If he had missed the deadline, the amount would have increased by at least £850.
Dr Kirsty Bonnet acquired a purpose-built flat in Pontllanfraith in September 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Pontllanfraith with an extended lease were valued around £181,600. The average amount of ground rent was £55 billed yearly. The lease ended in 2078. Taking into account 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus expenses.
In 2013 we were e-mailed by Mr and Mrs. I Watson who, having acquired a ground floor apartment in Pontllanfraith in October 2001. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparative flats in Pontllanfraith with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed per annum. The lease terminated on 26 March 2098. Taking into account 72 years remaining we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.