With a domestic leasehold premises in Pentyrch, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Pentyrch with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Pentyrch can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 dealing with Pentyrch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold proprietor of a conversion apartment in Pentyrch on the market with a lease of fraction over 72 years remaining. Logan informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Logan to exercise his statutory right. Logan procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2011 we were called by Dr S Sánchez who, having acquired a garden apartment in Pentyrch in March 1998. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Pentyrch with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 collected annually. The lease terminated on 17 October 2088. Given that there were 63 years outstanding we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.
Mr G Michel purchased a one bedroom flat in Pentyrch in March 2007. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative homes in Pentyrch with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 billed per annum. The lease came to a finish in 2099. Given that there were 74 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.