When it comes to residential leasehold premises in Pentyrch, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Pentyrch with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below eighty years outstanding, under the current legislation the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors 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 year Rory, started to get near to the 80-year mark with the lease on his purpose- built apartment in Pentyrch. Having purchased his flat 19 years previously, the unexpired term was of little concern. Thankfully, he noticed he needed to take steps soon on a lease extension. Rory arranged for a lease extension just in the nick of time last September. Rory and the landlord ultimately settled on a premium of £5,500 . If the lease had fallen to less than 80 years, the price would have gone up by a minimum £1,050.
Last September we were e-mailed by Mrs Emma Leroy , who took over the lease of a ground floor apartment in Pentyrch in March 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Pentyrch with a long lease were valued around £290,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish in 2106. Given that there were 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2011 we were approached by Mrs H Parker who, having purchased a basement apartment in Pentyrch in March 1996. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Pentyrch with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated in 2086. Having 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus expenses.