With a long leasehold premises in Port Talbot, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years left. Leasehold owners in Port Talbot with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Port Talbot can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 Port Talbot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her one bedroom flat in Port Talbot, Sophia initiated the lease extension process just as her lease was nearing the critical 80-year mark. The transaction was concluded in May 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Mrs R González , who moved into a purpose-built flat in Port Talbot in August 2003. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Port Talbot with a long lease were in the region of £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 27 February 2080. Having 54 years left we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of costs.
In 2012 we were approached by Mr and Mrs. F Ali who, having purchased a one bedroom apartment in Port Talbot in October 2012. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Port Talbot with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease ran out on 12 June 2100. Considering the 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.