Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Porthcawl. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Porthcawl have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful attention before putting off your Porthcawl lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Porthcawl leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Caleb, came precariously near to the 80-year mark with the lease on his studio apartment in Porthcawl. In buying his flat two decades ago, the unexpired term was of no bearing. Thankfully, he noticed he needed to take action soon on Extending the lease. Caleb extended the lease at the eleventh hour in August. Caleb and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £1,150.
In 2013 we were phoned by Mr and Mrs. I Watson who, having completed a basement apartment in Porthcawl in February 2005. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Porthcawl with a long lease were worth £225,800. The average ground rent payable was £60 invoiced per annum. The lease terminated in 2086. Given that there were 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 exclusive of expenses.
Last July we were called by Dr U García , who took over the lease of a first floor flat in Porthcawl in September 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Porthcawl with a long lease were valued around £210,000. The average ground rent payable was £50 collected per annum. The lease finished in 2106. Having 80 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.