Porthcawl leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be due. Flat owners in Porthcawl will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Porthcawl,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Porthcawl valuers.
In recent months Harvey, came very near to the eighty-year mark with the lease on his one bedroom apartment in Porthcawl. Having bought his property twenty years ago, the length of the lease was of no significance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Harvey arranged for a lease extension at the eleventh hour last August. Harvey and the freeholder via the management company in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £925.
In 2013 we were approached by Mrs Natalie Nelson who, having bought a garden flat in Porthcawl in February 2011. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar homes in Porthcawl with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed in 2103. Taking into account 77 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Dr Jake Taylor was assigned a lease of a basement flat in Porthcawl in September 2011. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Porthcawl with an extended lease were valued about £260,200. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including professional charges.