Penmaenmawr leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Penmaenmawr will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Lease extensions in Penmaenmawr can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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.
Max was the the leasehold owner of a conversion apartment in Penmaenmawr on the market with a lease of fraction over 72 years unexpired. Max informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr Ben Davies took over the lease of a ground floor apartment in Penmaenmawr in January 2010. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Penmaenmawr with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2095. Having 69 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Christmas we were approach by Dr O Simon , who took over the lease of a one bedroom flat in Penmaenmawr in April 2006. The question was if we could estimate the price would be for a ninety year lease extension. Similar residencies in Penmaenmawr with an extended lease were worth £290,000. The average amount of ground rent was £60 invoiced per annum. The lease elapsed in 2106. Having 80 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.