It’s an underpublicised certainty that a Pencader residential lease is a deteriorating asset. The lease value drops 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 gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half 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 extra value that a lease extension will add the property Most leasehold owners in Pencader will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Pencader with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Pencader leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a studio apartment in Pencader on the market with a lease of just over sixty years outstanding. Henry informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mrs Isabella Alexander took over the lease of a first floor flat in Pencader in May 1995. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable properties in Pencader with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease lapsed on 4 June 2097. Having 72 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last Christmas we were contacted by Dr Luke Martin , who completed a first floor apartment in Pencader in May 2006. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical flats in Pencader with a long lease were valued about £261,600. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed in 2077. Taking into account 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 plus fees.