Penmaenmawr leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Penmaenmawr will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Penmaenmawr with over 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage 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. |
Irrespective of whether you are a tenant or a landlord in Penmaenmawr,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penmaenmawr valuers.
Toby was the the leasehold proprietor of a studio flat in Penmaenmawr being sold with a lease of fraction over 72 years remaining. Toby on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr Nathan Girard was assigned a lease of a studio apartment in Penmaenmawr in July 2008. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Penmaenmawr with 100 year plus lease were valued around £242,600. The mid-range ground rent payable was £45 collected quarterly. The lease end date was on 24 June 2093. Given that there were 67 years outstanding we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including professional charges.
Last Winter we were contacted by Mr B Cook , who purchased a purpose-built apartment in Penmaenmawr in January 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Penmaenmawr with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected monthly. The lease finished on 11 July 2104. Considering the 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.