The nearer a domestic lease in Penarth nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner than later. Many flat owners in Penarth will qualify for this right; however a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The lawyers that we work with undertake Penarth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following lengthy discussions with the landlord of her two bedroom apartment in Penarth, Anna initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in January 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. G Martin bought a one bedroom apartment in Penarth in May 2001. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative flats in Penarth with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished in 2101. Considering the 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last August we were e-mailed by Dr Jason Brooks , who completed a newly refurbished apartment in Penarth in August 1997. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Penarth with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed on 6 October 2090. Taking into account 64 years remaining we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.