With a long leasehold property in Pencader, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Pencader with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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 | 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 However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Pencader 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 lawyer we work with provide it.
Ryan owned a conversion flat in Pencader on the market with a lease of just over fifty eight years unexpired. Ryan informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were phoned by Ms Isabella Evans , who acquired a recently refurbished apartment in Pencader in March 2001. We are asked if we could estimate the price could be for a 90 year lease extension. Identical premises in Pencader with a long lease were in the region of £232,800. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2090. Given that there were 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
In 2010 we were e-mailed by Ms D Mercier who, having purchased a one bedroom apartment in Pencader in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Pencader with a long lease were valued around £275,000. The average ground rent payable was £55 invoiced yearly. The lease ended in 2101. Having 76 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.