Pencader 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. Legislation has been in place for sometime now which permits qualifying Pencader residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Pencader you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Pencader with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Pencader can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Pencader lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie owned a studio flat in Pencader on the market with a lease of a few days over 61 years outstanding. Jamie on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Autumn we were approach by Mr Lewis Ricardo , who acquired a one bedroom flat in Pencader in April 1997. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in Pencader with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2094. Having 69 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2014 we were called by Dr Joseph Howard who, having was assigned a lease of a garden flat in Pencader in June 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Pencader with 100 year plus lease were valued about £290,000. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 23 March 2105. Considering the 80 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.