The only way is down when it comes to Porthcawl lease terms. Porthcawl leaseholds that have a residual term shorter than eighty years will de-escalate in market price even faster, and the cost to extend your lease will increase.
Leasehold premises in Porthcawl with in excess of one hundred years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The lawyers that we work with undertake Porthcawl 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 lawyer we work with provide it.
Last year Jamie, came seriously near to the eighty-year mark with the lease on his purpose- built flat in Porthcawl. Having purchased his property two decades ago, the unexpired term was of minimal significance. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Jamie was able to extend his lease at the eleventh hour last August. Jamie and the freeholder via the management company eventually settled on an amount of £5,000 . If the lease had gone to less than eighty years, the figure would have become more costly by at least £900.
Last Winter we were contacted by Dr Oscar Morel , who acquired a basement apartment in Porthcawl in February 2002. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Porthcawl with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2082. Having 58 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.
In 2014 we were e-mailed by Mrs W Díaz who, having bought a recently refurbished apartment in Porthcawl in March 2010. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Porthcawl with an extended lease were worth £205,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 7 July 2102. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus costs.