The market value of a leasehold property in Pontypridd depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that formalities can be addressed prior to the eighty year threshold. Current legislation entitles Pontypridd qualifying lessees to an additional term of ninety years on top of the unexpired term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Pontypridd,the lease extension lawyers that we work with will always be happy 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.
Ollie owned a studio apartment in Pontypridd on the market with a lease of a few days over sixty years left. Ollie on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2013 we were called by Ms M Bailey who, having took over the lease of a one bedroom flat in Pontypridd in November 2002. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Pontypridd with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease ended on 18 May 2078. Having 52 years remaining we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.
In 2010 we were called by Mr and Mrs. O Mason who, having purchased a one bedroom apartment in Pontypridd in January 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable homes in Pontypridd with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 billed per annum. The lease expired in 2098. Considering the 72 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.