There is no doubt about it a leasehold flat or house in Penarth is a wasting asset as a result of the shortening lease. If the residual term has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Penarth will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Penarth with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Penarth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penarth valuers.
After protracted correspondence with the freeholder of her one bedroom apartment in Penarth, Jodie started the lease extension process as the eighty year mark was rapidly approaching. The lease extension was concluded in August 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. A Ramírez purchased a one bedroom flat in Penarth in October 2001. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Penarth with a long lease were worth £189,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed on 27 January 2078. Given that there were 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Last Spring we were called by Mrs R Roux , who completed a studio apartment in Penarth in January 2011. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable residencies in Penarth with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 collected quarterly. The lease finished in 2098. Given that there were 73 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.