Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Penrhyn Bay. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Penrhyn Bay have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due deliberation before delaying your Penrhyn Bay lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Penrhyn Bay can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring Penrhyn Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a 2 bedroom flat in Penrhyn Bay on the market with a lease of fraction over sixty years remaining. Henry on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were contacted by Mr and Mrs. R Reed , who bought a studio flat in Penrhyn Bay in November 2012. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative homes in Penrhyn Bay with a long lease were worth £233,200. The average ground rent payable was £60 billed per annum. The lease ran out in 2086. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus fees.
In 2009 we were approached by Mr and Mrs. E Morris who, having purchased a basement apartment in Penrhyn Bay in March 2007. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Penrhyn Bay with an extended lease were valued around £166,800. The average amount of ground rent was £50 invoiced per annum. The lease elapsed on 2 February 2075. Having 50 years remaining we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.