It’s a harsh certainty that a Pontypool residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Pontypool property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Pontypool will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Pontypool can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Pontypool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the landlord of her one bedroom flat in Pontypool, Georgia commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was finalised in November 2012. The landlord’s costs were kept to an absolute minimum.
Last September we were e-mailed by Dr F Sánchez , who completed a purpose-built apartment in Pontypool in May 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Pontypool with an extended lease were valued around £240,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed in 2087. Given that there were 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.
In 2009 we were e-mailed by Dr Adam Scott who, having acquired a one bedroom flat in Pontypool in July 1997. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Pontypool with a long lease were worth £174,200. The average ground rent payable was £55 collected annually. The lease came to a finish in 2076. Having 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.