It’s an underpublicised certainty that a Porthcawl residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Porthcawl property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Porthcawl will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Porthcawl with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Porthcawl can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 dealing with Porthcawl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the landlord of her ground floor apartment in Porthcawl, Amy commenced the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was finalised in January 2011. The landlord’s fees were negotiated to about six hundred GBP.
Last May we were phoned by Ms U Young , who was assigned a lease of a garden flat in Porthcawl in September 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative residencies in Porthcawl with a long lease were in the region of £285,000. The average ground rent payable was £45 invoiced per annum. The lease concluded in 2098. Having 72 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Winter we were e-mailed by Mr and Mrs. U Scott , who was assigned a lease of a ground floor apartment in Porthcawl in July 1999. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Porthcawl with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 billed annually. The lease elapsed on 7 July 2087. Taking into account 61 years left we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of expenses.