The market value of Pentwyn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold premises in Pentwyn with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Pentwyn,the lease extension lawyers 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 Pentwyn valuers.
Trailing lengthy correspondence with the freeholder of her leasehold flat in Pentwyn, Imogen commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in August 2005. The freeholder’s costs were restricted to less than 700 pounds.
In 2012 we were e-mailed by Mr and Mrs. K Torres who, having bought a garden flat in Pentwyn in February 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar properties in Pentwyn with an extended lease were in the region of £210,000. The average ground rent payable was £50 billed quarterly. The lease ended on 23 March 2105. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Dr Edward David completed a purpose-built apartment in Pentwyn in July 2004. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Pentwyn with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed annually. The lease terminated in 2094. Taking into account 69 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.