Penllergaer leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 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 to the property. Flat owners in Penllergaer will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Penllergaer with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Last Summer Aarav, started to get close to the 80-year mark with the lease on his one bedroom apartment in Penllergaer. Having purchased his home 19 years previously, the unexpired term was of minimal significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Aarav arranged for a lease extension just under the wire in July. Aarav and the landlord in the end settled on sum of £6,000 . If the lease had slid lower than eighty years, the sum would have escalated by a minimum £1,125.
Last Summer we were called by Ms Tia Young , who moved into a basement apartment in Penllergaer in September 1995. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical residencies in Penllergaer with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 billed per annum. The lease terminated on 2 August 2093. Considering the 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.
Last Summer we were contacted by Dr Arthur Fournier , who purchased a newly refurbished flat in Penllergaer in July 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable residencies in Penllergaer with an extended lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed in 2082. Taking into account 56 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.