Penrhyn Bay leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Penrhyn Bay will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Penrhyn Bay with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Penrhyn Bay leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Logan, came precariously close to the 80-year threshold with the lease on his studio apartment in Penrhyn Bay. In buying his property two decades ago, the length of the lease was of little interest. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Logan extended the lease just in the nick of time in August. Logan and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the amount would have become more costly by at least £1,150.
Last Winter we were contacted by Mr and Mrs. O James , who purchased a basement flat in Penrhyn Bay in January 1995. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Penrhyn Bay with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expiry date was on 4 May 2105. Considering the 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
Dr W Lefebvre owned a one bedroom apartment in Penrhyn Bay in August 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Penrhyn Bay with 100 year plus lease were valued around £275,000. The average amount of ground rent was £45 billed annually. The lease lapsed in 2094. Considering the 69 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.