It’s an underpublicised truth that a Pencader residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Pencader property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Pencader will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Pencader with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake 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.
After protracted negotiations with the landlord of her two bedroom flat in Pencader, Poppy commenced the lease extension process just as the lease was coming close to the crucial 80-year mark. The legal work completed in April 2009. The landlord’s charges were kept to an absolute minimum.
Dr H Stewart took over the lease of a newly refurbished flat in Pencader in May 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical premises in Pencader with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended on 25 October 2095. Having 70 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2009 we were e-mailed by Mr and Mrs. M López who, having took over the lease of a purpose-built flat in Pencader in March 1996. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative flats in Pencader with an extended lease were worth £246,800. The mid-range ground rent payable was £60 billed annually. The lease terminated on 18 March 2075. Taking into account 50 years remaining we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including expenses.