Pentyrch leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Pentyrch will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Pentyrch with over one hundred 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with handle Pentyrch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Evan, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Pentyrch. In buying his flat two decades ago, the unexpired term was of no bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Evan was able to extend his lease just in the nick of time last September. Evan and the freeholder via the management company in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £900.
Mr and Mrs. J François acquired a ground floor apartment in Pentyrch in February 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in Pentyrch with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected per annum. The lease came to a finish on 14 July 2094. Considering the 70 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
In 2013 we were e-mailed by Dr F Nguyen who, having owned a one bedroom apartment in Pentyrch in February 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Pentyrch with 100 year plus lease were worth £246,800. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2074. Having 50 years as a residual term we approximated the premium to the landlord for the lease extension to be within £44,700 and £51,600 plus legals.