When it comes to domestic leasehold premises in Pentwyn, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years remaining. Anyone in Pentwyn with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years left, under the relevant statute the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Pentwyn with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Pentwyn 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 conveyancing solicitor we work with provide it.
In 2014 Riley, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Pentwyn. Having purchased his home two decades ago, the lease term was of minimal significance. As luck would have it, he recognised he would soon be paying way over the odds for a lease extension. Riley arranged for a lease extension just under the wire in September. Riley and the landlord eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,150.
Last year we were phoned by Mr and Mrs. A Richardson , who completed a studio apartment in Pentwyn in January 2007. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable homes in Pentwyn with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2076. Taking into account 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
Ms P Collins acquired a ground floor apartment in Pentwyn in January 1999. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparable homes in Pentwyn with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 collected annually. The lease came to a finish on 9 April 2096. Taking into account 71 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.