For those whose Porthmadog flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Porthmadog with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Porthmadog can be a difficult process. We recommend you secure guidance from a conveyancer 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 procuring Porthmadog lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Nathan, came very close to the eighty-year mark with the lease on his first floor flat in Porthmadog. In buying his property 19 years previously, the unexpired term was of no bearing. by good luck, he noticed he needed to take action soon on a lease extension. Nathan arranged for a lease extension just under the wire last July. Nathan and the freeholder subsequently settled on an amount of £6,000 . If the lease had slid to less than eighty years, the figure would have become more exhorbitant by a minimum £975.
In 2010 we were e-mailed by Mr I Stewart who, having completed a one bedroom apartment in Porthmadog in July 2002. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Porthmadog with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease came to a finish on 14 November 2103. Taking into account 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Mrs Y Richardson bought a first floor flat in Porthmadog in October 1999. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Porthmadog with an extended lease were in the region of £267,600. The average ground rent payable was £65 billed per annum. The lease expired on 8 January 2092. Having 67 years left we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.