With a domestic leasehold premises in Pontprennau, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Pontprennau with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Pontprennau with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Lease extensions in Pontprennau can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pontprennau lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her purpose-built flat in Pontprennau, Sophie initiated the lease extension process as the eighty year mark was fast approaching. The lease extension was concluded in January 2010. The freeholder’s fees were negotiated to under 700 pounds.
In 2012 we were phoned by Mr G Clarke who, having completed a garden flat in Pontprennau in August 1999. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar properties in Pontprennau with a long lease were worth £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease concluded in 2078. Considering the 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including costs.
Mr Muhammad Evans owned a garden apartment in Pontprennau in October 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative properties in Pontprennau with 100 year plus lease were valued around £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 22 June 2089. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 not including expenses.