Stop! Your Lease Extension in Penarth Could Be FREE

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Many leaseholders in Penarth are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Penarth has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should start your Penarth lease extension

Why you should start your Penarth lease extension today:

Increase your lease and increase your Penarth property value

The market value of Penarth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold properties in Penarth with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lending institutions may decide not to issue a mortgage with a short lease

Mortgage lenders have specific criteria when lending funds secured on leasehold homes. Some will simply refuse lend at all once the remaining lease term slips lower than a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant if you are intending to refinance your Penarth home.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Halifax Minimum 70 years from the date of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

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.
 


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.

Yorkshire 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.

What makes us experts in Penarth lease extensions?

Engaging our service gives you increased control over the value of your Penarth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Penarth Lease Extension Example Cases:

Joseph, Penarth, Vale Of Glamorgan

Half a year ago Joseph, came dangerously near to the eighty-year threshold with the lease on his studio flat in Penarth. In buying his flat two decades ago, the lease term was of little importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Joseph arranged for a lease extension just under the wire in June. Joseph and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had fallen lower than eighty years, the sum would have increased by at least £1,000.

Penarth case:

In 2012 we were approached by Dr Sarah Mitchell who, having completed a garden apartment in Penarth in July 2000. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable residencies in Penarth with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease elapsed on 5 June 2086. Having 60 years remaining we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus fees.

Penarth case:

Last Christmas we were approach by Mr Alexander Reed , who owned a purpose-built flat in Penarth in August 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Penarth with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected monthly. The lease finished in 2106. Having 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.