It’s a harsh truth that a Porthmadog residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Porthmadog property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Porthmadog will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Porthmadog with more than 100 years unexpired on the lease are often regarded as a ‘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 freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Porthmadog leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aarav was the the leasehold proprietor of a conversion flat in Porthmadog being sold with a lease of a few days over sixty years left. Aarav informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. T Bonnet took over the lease of a one bedroom flat in Porthmadog in January 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Porthmadog with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease ran out on 1 May 2099. Taking into account 73 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2013 we were contacted by Ms Victoria Williams who, having acquired a first floor apartment in Porthmadog in May 2008. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Similar premises in Porthmadog with a long lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease termination date was in 2088. Considering the 62 years unexpired we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.