Pencoed residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Pencoed with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Retaining our service gives you enhanced control over the value of your Pencoed leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted correspondence with the freeholder of her purpose-built apartment in Pencoed, Naomi initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction completed in June 2007. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were contacted by Dr Y King who, having moved into a ground floor flat in Pencoed in October 2010. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Pencoed with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed annually. The lease lapsed on 26 April 2094. Having 69 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
Last Christmas we were phoned by Dr N Cooper , who took over the lease of a ground floor flat in Pencoed in January 1999. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical properties in Pencoed with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease terminated on 23 October 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.