Chances are that where you own a flat in Pontyclun you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers 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 conveyancer we work with provide it.
Half a year ago Seth, came precariously near to the eighty-year mark with the lease on his garden flat in Pontyclun. In buying his property two decades ago, the unexpired term was of no significance. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Seth arranged for a lease extension just in the nick of time last May. Seth and the landlord who owned the flat above ultimately settled on an amount of £6,000 . If he not met the deadline, the amount would have become more costly by a minimum £1,075.
Mrs Lucy González was assigned a lease of a purpose-built apartment in Pontyclun in February 2000. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Pontyclun with an extended lease were valued about £275,000. The average amount of ground rent was £45 billed yearly. The lease finished in 2094. Given that there were 69 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Spring we were called by Mrs N Watson , who completed a one bedroom flat in Pontyclun in September 2007. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative flats in Pontyclun with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease expired in 2083. Taking into account 58 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.