It’s an underpublicised certainty that a Pentyrch 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 first few years due to the depreciation being disguised by increases in the Pentyrch property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 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. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Pentyrch will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Pentyrch with over one hundred years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Pentyrch can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 Pentyrch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Milo, came perilously near to the 80-year mark with the lease on his one bedroom flat in Pentyrch. Having bought his home 19 years previously, the length of the lease was of little relevance. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Milo extended the lease just under the wire in April. Milo and the freeholder via the management company in the end agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £1,150.
Last Autumn we were called by Mr and Mrs. T Scott , who purchased a purpose-built apartment in Pentyrch in May 2007. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable residencies in Pentyrch with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out on 19 February 2074. Considering the 50 years outstanding we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including costs.
Ms T Clarke acquired a one bedroom flat in Pentyrch in October 2005. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative homes in Pentyrch with an extended lease were worth £208,200. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2085. Having 61 years left we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.