Pencader leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Pencader enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pencader you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Pencader leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Pencader can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pencader lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ryan owned a studio flat in Pencader being sold with a lease of a few days over 72 years left. Ryan on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr H Stewart completed a first floor flat in Pencader in March 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Pencader with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 billed annually. The lease ran out in 2078. Given that there were 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of fees.
In 2014 we were approached by Ms V Clark who, having owned a garden flat in Pencader in July 2004. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Pencader with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 collected every twelve months. The lease terminated in 2089. Taking into account 64 years outstanding we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus fees.