Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Pontyclun. Inevitably, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Pontyclun have the right to extend the lease for a further ninety years in accordance with legislation. You should give due deliberation before delaying your Pontyclun lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Retaining our service will provide you enhanced control over the value of your Pontyclun leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her one bedroom flat in Pontyclun, Robyn initiated the lease extension process just as her lease was approaching the all-important eighty-year threshold. The lease extension was finalised in May 2010. The freeholder’s fees were negotiated to less than 450 GBP.
Last Spring we were contacted by Mr and Mrs. A Scott , who took over the lease of a basement flat in Pontyclun in October 2000. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical flats in Pontyclun with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected yearly. The lease finished in 2087. Considering the 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.
In 2012 we were e-mailed by Dr Charlotte Rivera who, having acquired a purpose-built apartment in Pontyclun in February 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar homes in Pontyclun with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected per annum. The lease finished on 18 June 2076. Given that there were 51 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.