Port Talbot leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Port Talbot will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Port Talbot lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Nathan was the the leasehold proprietor of a high value flat in Port Talbot on the market with a lease of just over sixty years left. Nathan informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Summer we were called by Mr and Mrs. A Rivera , who completed a one bedroom flat in Port Talbot in January 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Port Talbot with an extended lease were worth £290,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 11 March 2099. Considering the 73 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2014 we were approached by Mrs Jordan Reed who, having completed a purpose-built apartment in Port Talbot in February 1996. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Identical residencies in Port Talbot with an extended lease were worth £240,600. The average amount of ground rent was £60 billed annually. The lease concluded on 24 March 2088. Having 62 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.