The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Porthcawl have the right to extend the lease for an additional ninety years under legislation. Do give careful consideration before delaying your Porthcawl lease extension. Putting off the costs today simply escalates the amount you will ultimately be required to pay to extend the lease.
Leasehold residencies in Porthcawl with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Porthcawl,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Porthcawl valuers.
Trailing lengthy correspondence with the freeholder of her one bedroom apartment in Porthcawl, Chelsea started the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in April 2010. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Nicole Morel who, having purchased a basement flat in Porthcawl in July 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Porthcawl with 100 year plus lease were worth £213,600. The mid-range ground rent payable was £60 billed per annum. The lease finished in 2082. Taking into account 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Dr Rachel François acquired a one bedroom apartment in Porthcawl in November 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Porthcawl with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out on 18 January 2103. Taking into account 78 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.