Porthcawl leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Porthcawl will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Porthcawl with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
After lengthy correspondence with the landlord of her first floor flat in Porthcawl, Rosie initiated the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in June 2008. The landlord’s costs were restricted to less than 500 pounds.
Mr and Mrs. S Jones owned a basement apartment in Porthcawl in May 2002. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Porthcawl with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated in 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus professional charges.
In 2012 we were contacted by Ms D Roberts who, having bought a studio flat in Porthcawl in May 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Porthcawl with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 collected annually. The lease finished on 16 March 2081. Taking into account 55 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including fees.