The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Porthcawl can extend the lease for a further 90 years in accordance with legislation. Do think carefully before delaying your Porthcawl lease extension. Postponing the costs today simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold premises in Porthcawl with in excess of 100 years unexpired on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Porthcawl,the lease extension lawyers that we work with will always be prepared 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.
Owen was the the leasehold proprietor of a high value flat in Porthcawl on the market with a lease of fraction over 72 years unexpired. Owen on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Ms Alice López moved into a one bedroom apartment in Porthcawl in July 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Porthcawl with an extended lease were in the region of £235,600. The average ground rent payable was £60 collected yearly. The lease finished in 2088. Given that there were 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.
Last year we were called by Mr and Mrs. T Lambert , who owned a newly refurbished flat in Porthcawl in September 1996. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable residencies in Porthcawl with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish in 2077. Given that there were 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.