The re-sale value of a leasehold property in Penrhyndeudraeth depends on how many years the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year threshold. Statute enables Penrhyndeudraeth qualifying lessees to an additional term of 90 years in addition to the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Penrhyndeudraeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a studio apartment in Penrhyndeudraeth being sold with a lease of just over sixty years unexpired. Benjamin informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
In 2013 we were approached by Dr Sophia Watson who, having purchased a ground floor flat in Penrhyndeudraeth in January 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Penrhyndeudraeth with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out on 24 November 2102. Considering the 77 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last Spring we were phoned by Mr and Mrs. P Moreau , who completed a first floor flat in Penrhyndeudraeth in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Penrhyndeudraeth with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 26 September 2082. Considering the 57 years unexpired we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.