With a long leasehold property in Pontypridd, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Pontypridd with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has below eighty years left, under the relevant legislation the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Pontypridd leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Theo, came very near to the eighty-year threshold with the lease on his ground floor flat in Pontypridd. In buying his property two decades ago, the lease term was of little significance. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Theo was able to extend his lease at the eleventh hour last September. Theo and the freeholder subsequently agreed on a premium of £6,000 . If the lease had gone lower than eighty years, the price would have increased by at least £1,150.
Mr Toby Hill was assigned a lease of a recently refurbished apartment in Pontypridd in November 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar premises in Pontypridd with 100 year plus lease were in the region of £218,400. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed on 11 May 2084. Taking into account 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus expenses.
Mr and Mrs. D Rogers purchased a studio apartment in Pontypridd in July 1999. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar residencies in Pontypridd with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 4 October 2104. Given that there were 79 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.