Porth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Porth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Porth you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Porth with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Porth can be a difficult process. We recommend you get guidance 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 Porth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the freeholder of her two bedroom apartment in Porth, Amelia commenced the lease extension process as the 80 year deadline was fast approaching. The transaction was concluded in September 2005. The landlord’s costs were restricted to below 450 GBP.
In 2009 we were called by Mrs Lydia Nguyen who, having took over the lease of a ground floor apartment in Porth in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar properties in Porth with 100 year plus lease were valued about £184,000. The average ground rent payable was £55 collected per annum. The lease elapsed in 2078. Taking into account 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Mr and Mrs. C Williams acquired a first floor flat in Porth in November 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Porth with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 25 February 2098. Given that there were 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.