Pencader leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Pencader will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Pencader with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
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.
Riley owned a conversion apartment in Pencader being marketed with a lease of a little over sixty years left. Riley on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last year we were e-mailed by Mr and Mrs. J Martin , who moved into a purpose-built flat in Pencader in July 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable premises in Pencader with a long lease were worth £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2100. Taking into account 74 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Dr U Mason took over the lease of a first floor flat in Pencader in September 1998. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Pencader with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 17 November 2080. Given that there were 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.