Unfortunately that a Pontllanfraith residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Pontllanfraith property prices.Once your lease nears 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 eighty years - otherwise a higher amount will be due. Most leasehold owners in Pontllanfraith will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Pontllanfraith,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pontllanfraith valuers.
Last Winter Benjamin, came dangerously near to the 80-year threshold with the lease on his basement flat in Pontllanfraith. In buying his home twenty years ago, the length of the lease was of no interest. As luck would have it, he noticed he needed to take steps soon on a lease extension. Benjamin extended the lease just in the nick of time in April. Benjamin and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had fallen lower than eighty years, the sum would have become more costly by at least £900.
In 2009 we were contacted by Mr and Mrs. Y Morel who, having bought a garden flat in Pontllanfraith in July 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Pontllanfraith with 100 year plus lease were valued about £213,600. The average amount of ground rent was £60 collected per annum. The lease finished on 3 February 2083. Taking into account 57 years left we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
In 2012 we were approached by Ms Abbie Jones who, having was assigned a lease of a purpose-built apartment in Pontllanfraith in November 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical premises in Pontllanfraith with an extended lease were worth £200,000. The average amount of ground rent was £50 collected quarterly. The lease finished on 28 August 2103. Considering the 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.