The market value of a leasehold property in Pontypridd is impacted by how long the lease has remaining. If it is near to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be finalised ahead of the 80 year mark. Current legislation enables Pontypridd qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Pontypridd with more than one hundred years remaining 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Pontypridd can be a difficult process. We recommend you secure guidance from a conveyancer 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 procuring Pontypridd lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew owned a studio apartment in Pontypridd on the market with a lease of just over 59 years left. Matthew on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. C Laurent moved into a studio flat in Pontypridd in March 2006. We are asked if we could estimate the price would be to extend the lease by 90 years. Identical premises in Pontypridd with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected annually. The lease terminated on 21 May 2090. Considering the 64 years remaining we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
In 2010 we were e-mailed by Dr G García who, having took over the lease of a garden apartment in Pontypridd in June 2011. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable properties in Pontypridd with 100 year plus lease were worth £184,000. The average ground rent payable was £55 billed per annum. The lease lapsed in 2079. Considering the 53 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.