On the balance of probabilities where you own a flat in Penllergaer you actually own a long leasehold interest over your property
Leasehold residencies in Penllergaer 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake Penllergaer 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.
Tyler owned a high value apartment in Penllergaer being marketed with a lease of just over fifty eight years remaining. Tyler informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2012 we were e-mailed by Dr K Clark who, having moved into a basement flat in Penllergaer in September 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Penllergaer with an extended lease were worth £206,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 2 March 2081. Given that there were 56 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.
In 2011 we were called by Mr and Mrs. T Hernández who, having bought a first floor flat in Penllergaer in February 2000. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical homes in Penllergaer with a long lease were in the region of £300,000. The average ground rent payable was £50 billed every twelve months. The lease expired in 2101. Considering the 76 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.