The market value of a leasehold property in Pentyrch is impacted by how long the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the 80 year threshold. Statute enables Pentyrch qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Pentyrch with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Pentyrch leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her basement apartment in Pentyrch, Victoria started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work was concluded in September 2015. The freeholder’s charges were kept to an absolute minimum.
Mr H Jones took over the lease of a newly refurbished apartment in Pentyrch in February 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Pentyrch with an extended lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2078. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of fees.
In 2013 we were contacted by Mrs Aimee Jones who, having owned a ground floor flat in Pentyrch in October 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Pentyrch with an extended lease were valued about £218,000. The average ground rent payable was £45 invoiced monthly. The lease terminated in 2089. Having 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus professional charges.