The value of Pontypridd leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is below than eighty years
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Pontypridd,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pontypridd valuers.
Half a year ago Tommy, started to get near to the eighty-year threshold with the lease on his leasehold flat in Pontypridd. Having bought his property 19 years ago, the lease term was of little bearing. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Tommy arranged for a lease extension at the eleventh hour last May. Tommy and the freeholder via the management company eventually settled on an amount of £5,500 . If he not met the deadline, the premium would have gone up by a minimum £875.
Dr O Martin took over the lease of a ground floor apartment in Pontypridd in September 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Pontypridd with an extended lease were in the region of £235,600. The mid-range ground rent payable was £60 collected per annum. The lease end date was on 21 January 2087. Considering the 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.
In 2010 we were e-mailed by Mr and Mrs. B Williams who, having acquired a one bedroom flat in Pontypridd in May 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Pontypridd with an extended lease were valued around £174,200. The average ground rent payable was £55 billed yearly. The lease end date was in 2076. Considering the 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.