Unfortunately that a Pontllanfraith residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Pontllanfraith property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Pontllanfraith will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Pontllanfraith with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Pontllanfraith,the lease extension lawyers 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 Pontllanfraith valuers.
In 2014 Oliver, came very close to the eighty-year threshold with the lease on his basement flat in Pontllanfraith. Having purchased his home two decades ago, the length of the lease was of minimal concern. Thankfully, he realised he would imminently be paying an inflated amount for Extending the lease. Oliver arranged for a lease extension just in the nick of time last April. Oliver and the landlord in the end settled on sum of £5,000 . If the lease had dropped below 80 years, the price would have escalated by a minimum £875.
In 2011 we were e-mailed by Dr H Parker who, having took over the lease of a one bedroom apartment in Pontllanfraith in August 2005. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Pontllanfraith with an extended lease were worth £300,000. The average ground rent payable was £50 billed annually. The lease ran out in 2102. Considering the 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
In 2013 we were phoned by Mr and Mrs. C Young who, having purchased a studio apartment in Pontllanfraith in January 1997. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Pontllanfraith with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected per annum. The lease elapsed on 27 October 2091. Given that there were 65 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.