The nearer a residential lease in Penmaenmawr gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Penmaenmawr will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Penmaenmawr can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience dealing with Penmaenmawr lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her one bedroom flat in Penmaenmawr, Isobel commenced the lease extension process as the 80 year mark was fast advancing. The legal work was concluded in February 2011. The landlord’s fees were negotiated to less than 650 GBP.
In 2011 we were e-mailed by Mrs L Simon who, having purchased a ground floor apartment in Penmaenmawr in October 2006. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical flats in Penmaenmawr with a long lease were in the region of £200,800. The average ground rent payable was £65 billed quarterly. The lease ran out on 8 October 2085. Given that there were 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.
In 2014 we were approached by Mr and Mrs. C Ali who, having bought a first floor flat in Penmaenmawr in June 2009. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable flats in Penmaenmawr with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2096. Given that there were 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.