The nearer a domestic lease in Penrhyndeudraeth nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Penrhyndeudraeth will qualify for this right; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Penrhyndeudraeth can be a difficult process. We recommend you obtain professional help from a lawyer 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 in-depth market knowledge procuring Penrhyndeudraeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a high value flat in Penrhyndeudraeth on the market with a lease of a few days over sixty years left. Jackson informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. T Williams purchased a basement apartment in Penrhyndeudraeth in February 2000. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar flats in Penrhyndeudraeth with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed annually. The lease ran out on 2 March 2097. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Winter we were called by Mr B Martinez , who purchased a recently refurbished flat in Penrhyndeudraeth in August 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical properties in Penrhyndeudraeth with 100 year plus lease were worth £261,600. The average ground rent payable was £60 invoiced monthly. The lease termination date was in 2077. Taking into account 52 years remaining we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including legals.