Penarth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Penarth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Penarth you should investigate if your lease has between seventy and ninety years left. 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 pay is what is known as a marriage value
Leasehold properties in Penarth with in excess of one hundred years unexpired on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Penarth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her two bedroom apartment in Penarth, Sophia started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work was finalised in September 2009. The freeholder’s charges were restricted to less than 700 pounds.
In 2011 we were phoned by Mr and Mrs. C Adams who, having completed a purpose-built flat in Penarth in June 1999. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar premises in Penarth with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 billed annually. The lease termination date was on 19 February 2090. Considering the 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
In 2011 we were phoned by Mr and Mrs. V Parker who, having moved into a one bedroom flat in Penarth in June 2009. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical properties in Penarth with a long lease were worth £191,400. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 23 June 2079. Taking into account 54 years outstanding we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.