It’s a harsh truth that a Pencader residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Pencader property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. Most flat owners in Pencader will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. 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 lawyer for the duration of the formalities.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Pencader,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pencader valuers.
Last October Thomas, started to get near to the 80-year threshold with the lease on his basement apartment in Pencader. In buying his home two decades ago, the unexpired term was of no bearing. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Thomas arranged for a lease extension just in the nick of time last March. Thomas and the freeholder in the end agreed on a premium of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £925.
In 2014 we were called by Mr and Mrs. F Martinez who, having was assigned a lease of a basement apartment in Pencader in February 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Pencader with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease terminated on 25 April 2084. Given that there were 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.
Last Autumn we were called by Mr and Mrs. L Girard , who was assigned a lease of a basement apartment in Pencader in April 1995. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Pencader with a long lease were worth £250,000. The average ground rent payable was £50 invoiced per annum. The lease finished in 2095. Given that there were 69 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.