The market value of a leasehold property in Pontyclun is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Statute entitles Pontyclun qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Pontyclun with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| The Mortgage Works |
The lawyers 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.
During the course of the last few months Seth, came dangerously near to the eighty-year mark with the lease on his two bedroom flat in Pontyclun. Having purchased his home 18 years previously, the length of the lease was of no interest. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Seth was able to extend his lease just under the wire last May. Seth and the freeholder ultimately agreed on a premium of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £900.
Last year we were e-mailed by Mrs V Campbell , who bought a purpose-built flat in Pontyclun in October 2006. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparative residencies in Pontyclun with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected yearly. The lease concluded on 23 May 2098. Taking into account 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including fees.
Mr and Mrs. D Harris bought a one bedroom flat in Pontyclun in October 2008. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Pontyclun with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed annually. The lease ran out on 15 March 2087. Having 61 years remaining we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of costs.