With a domestic leasehold property in Porthcawl, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Porthcawl with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once a lease has fewer than eighty years outstanding, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Porthcawl with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Porthcawl can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 Porthcawl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph was the the leasehold owner of a high value flat in Porthcawl on the market with a lease of fraction over fifty eight years unexpired. Joseph on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last July we were contacted by Dr U Kelly , who bought a one bedroom apartment in Porthcawl in August 1996. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparative properties in Porthcawl with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated on 28 March 2096. Considering the 71 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.
Last January we were approach by Dr Finley Cox , who purchased a basement flat in Porthcawl in March 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar properties in Porthcawl with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease end date was in 2085. Given that there were 60 years unexpired we approximated the premium to the landlord to extend the lease to be between £25,700 and £29,600 plus expenses.