Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Porthcawl. Inevitably, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Porthcawl have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful deliberation before putting off your Porthcawl lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Porthcawl with over 100 years left on the lease are sometimes 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Porthcawl can be a difficult process. We recommend you obtain professional help from a lawyer 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 procuring Porthcawl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca owned a studio apartment in Porthcawl being marketed with a lease of just over 61 years remaining. Luca on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Mr P Howard moved into a one bedroom apartment in Porthcawl in June 2011. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Porthcawl with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease end date was in 2083. Having 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including legals.
Mr and Mrs. V Khan bought a studio apartment in Porthcawl in April 2002. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Porthcawl with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 28 August 2103. Considering the 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.