The value of Pontprennau leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold properties in Pontprennau with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Pontprennau leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her one bedroom apartment in Pontprennau, Ashleigh started the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension was concluded in November 2011. The landlord’s charges were restricted to approximately six hundred pounds.
Last Autumn we were e-mailed by Dr J Roux , who took over the lease of a one bedroom apartment in Pontprennau in August 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Pontprennau with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish in 2081. Considering the 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including expenses.
Last Christmas we were called by Mr Aaron Michel , who took over the lease of a purpose-built flat in Pontprennau in November 2006. The question was if we could estimate the premium would be to prolong the lease by an additional years. Similar homes in Pontprennau with an extended lease were worth £242,600. The average ground rent payable was £45 invoiced annually. The lease expired in 2092. Taking into account 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of fees.