Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Pontprennau. Clearly, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Pontprennau have the right to extend the lease for an additional ninety years under statute. Please give due consideration before putting off your Pontprennau lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Pontprennau 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Matthew, came seriously near to the eighty-year mark with the lease on his first floor flat in Pontprennau. In buying his flat 18 years ago, the length of the lease was of minimal importance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Matthew arranged for a lease extension at the eleventh hour in July. Matthew and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had descended lower than 80 years, the figure would have gone up by a minimum £1,000.
Mr and Mrs. F Moore was assigned a lease of a studio apartment in Pontprennau in July 2001. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable properties in Pontprennau with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired on 14 April 2097. Given that there were 72 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Last year we were e-mailed by Dr L James , who completed a ground floor apartment in Pontprennau in January 2009. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Identical residencies in Pontprennau with a long lease were in the region of £261,600. The average amount of ground rent was £60 invoiced monthly. The lease termination date was on 21 February 2077. Considering the 52 years unexpired we estimated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus expenses.