With a long leasehold property in Pontyclun, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Residents in Pontyclun with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Pontyclun with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Pontyclun leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac owned a studio flat in Pontyclun on the market with a lease of fraction over sixty years outstanding. Isaac on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Isaac to exercise his statutory right. Isaac procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mrs A Khan completed a one bedroom flat in Pontyclun in May 1996. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative residencies in Pontyclun with a long lease were valued around £189,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2079. Given that there were 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.
In 2009 we were called by Dr Caleb Torres who, having purchased a basement apartment in Pontyclun in July 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Pontyclun with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease end date was in 2099. Considering the 73 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.