With a domestic leasehold premises in Porthmadog, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Porthmadog with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Porthmadog can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in this area.
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 the wake of 6 months of lengthy negotiations with the freeholder of her first floor apartment in Porthmadog, Alicia commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension completed in July 2010. The freeholder’s charges were restricted to less than six hundred GBP.
Mr and Mrs. H Patel purchased a basement flat in Porthmadog in November 1995. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative homes in Porthmadog with an extended lease were in the region of £210,000. The average amount of ground rent was £50 billed monthly. The lease lapsed on 13 September 2106. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
In 2011 we were called by Dr O Phillips who, having acquired a garden flat in Porthmadog in June 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Porthmadog with an extended lease were valued about £275,000. The average ground rent payable was £45 collected per annum. The lease came to a finish on 8 April 2095. Taking into account 69 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.