It’s an underpublicised truth that a Penarth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Penarth property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Penarth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| TSB |
Lease extensions in Penarth can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 procuring Penarth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Samuel, came precariously close to the eighty-year mark with the lease on his first floor flat in Penarth. In buying his property two decades ago, the lease term was of no relevance. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Samuel extended the lease just ahead of time in April. Samuel and the landlord eventually settled on the final figure of £6,000 . If the lease had slid lower than 80 years, the price would have escalated by at least £1,125.
In 2014 we were e-mailed by Dr Lauren Murphy who, having completed a ground floor apartment in Penarth in March 1999. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Identical properties in Penarth with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 18 April 2089. Taking into account 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.
In 2010 we were contacted by Mr and Mrs. L Díaz who, having owned a first floor apartment in Penarth in March 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Penarth with a long lease were worth £181,600. The average ground rent payable was £55 billed every twelve months. The lease ended on 8 July 2078. Considering the 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.