Porth leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Porth will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Porth with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Porth can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Porth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her purpose-built apartment in Porth, Imogen started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension completed in April 2010. The landlord’s fees were kept to an absolute minimum.
Mr Hunter Michel owned a ground floor apartment in Porth in March 2007. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative residencies in Porth with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease expired in 2102. Given that there were 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2013 we were e-mailed by Mr and Mrs. O Fournier who, having took over the lease of a purpose-built flat in Porth in November 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Porth with an extended lease were worth £260,200. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 8 January 2091. Given that there were 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of costs.