Pentyrch leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Pentyrch residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Pentyrch you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Pentyrch with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Pentyrch leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold owner of a high value flat in Pentyrch on the market with a lease of a little over 59 years unexpired. Elijah informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Last Summer we were contacted by Mrs Poppy Hall , who acquired a one bedroom flat in Pentyrch in February 2006. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar residencies in Pentyrch with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 billed monthly. The lease concluded on 12 January 2090. Considering the 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.
Mr and Mrs. J Ali completed a first floor flat in Pentyrch in July 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar residencies in Pentyrch with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2101. Having 75 years remaining we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.