Porthcawl 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 your lease gets more expensive. It is the case that most Porthcawl tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Porthcawl you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Porthcawl leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Porthcawl with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Porthcawl,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Porthcawl valuers.
Off the back of protracted correspondence with the freeholder of her purpose-built apartment in Porthcawl, Alexandra commenced the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in October 2015. The landlord’s costs were kept to an absolute minimum.
Last October we were contacted by Ms J Allen , who moved into a studio apartment in Porthcawl in May 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Porthcawl with a long lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease expired on 1 September 2091. Considering the 67 years outstanding we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including legals.
Last Winter we were approach by Mrs Lydia Rogers , who completed a one bedroom apartment in Porthcawl in August 2009. The question was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Porthcawl with an extended lease were valued about £206,200. The mid-range amount of ground rent was £60 collected per annum. The lease finished in 2080. Given that there were 56 years left we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.