Penrhyn Bay leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Penrhyn Bay will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Penrhyn Bay with over one hundred years left on the lease are often regarded as a ‘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 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Penrhyn Bay,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penrhyn Bay valuers.
18 months ago Sebastian, came critically close to the eighty-year mark with the lease on his one bedroom apartment in Penrhyn Bay. Having bought his home two decades ago, the lease term was of little concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Sebastian was able to extend his lease at the eleventh hour in September. Sebastian and the freeholder via the management company eventually settled on a premium of £5,500 . If he not met the deadline, the amount would have gone up by at least £975.
Last month we were contacted by Mr J Cook , who bought a garden apartment in Penrhyn Bay in January 2007. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Penrhyn Bay with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 18 May 2098. Having 73 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
In 2011 we were e-mailed by Dr Elijah Roux who, having purchased a garden flat in Penrhyn Bay in July 2005. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Similar properties in Penrhyn Bay with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 collected yearly. The lease expired in 2087. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus expenses.