The market value of a leasehold property in Porthcawl depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year threshold. Leasehold Reform legislation entitles Porthcawl qualifying lessees to an additional term of ninety years in addition to the existing term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Porthcawl leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Toby, started to get close to the eighty-year mark with the lease on his ground floor apartment in Porthcawl. Having purchased his property two decades ago, the length of the lease was of minimal relevance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Toby was able to extend his lease at the eleventh hour in July. Toby and the freeholder subsequently agreed on the final figure of £6,000 . If he not met the deadline, the sum would have gone up by at least £900.
Dr Samantha Collins moved into a garden flat in Porthcawl in June 2000. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Porthcawl with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2106. Considering the 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2013 we were e-mailed by Mr and Mrs. B Stewart who, having took over the lease of a basement apartment in Porthcawl in August 2010. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical flats in Porthcawl with a long lease were worth £275,000. The mid-range ground rent payable was £45 billed yearly. The lease concluded in 2095. Considering the 69 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.