There is no doubt about it a leasehold property in Pontyclun is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Pontyclun will qualify for this right; that being said a conveyancer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | 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. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with procure Pontyclun lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Andrew, started to get close to the eighty-year mark with the lease on his ground floor flat in Pontyclun. In buying his property twenty years ago, the lease term was of no interest. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Andrew was able to extend his lease just under the wire last January. Andrew and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the sum would have escalated by a minimum £1,150.
In 2009 we were e-mailed by Mr and Mrs. B Cox who, having was assigned a lease of a studio apartment in Pontyclun in June 2001. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical homes in Pontyclun with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated in 2075. Given that there were 50 years outstanding we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus legals.
Last Christmas we were called by Mr and Mrs. H Ricardo , who moved into a one bedroom apartment in Pontyclun in November 2005. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable homes in Pontyclun with an extended lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease ran out in 2095. Taking into account 70 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.