With a residential leasehold property in Pensysarn, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Residents in Pensysarn with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has below eighty years left, under the relevant Act the freeholder can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Pensysarn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing protracted negotiations with the freeholder of her one bedroom flat in Pensysarn, Olivia commenced the lease extension process as the 80 year deadline was fast coming. The legal work completed in June 2015. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were called by Dr Aiden Pérez , who owned a first floor flat in Pensysarn in August 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable flats in Pensysarn with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2094. Considering the 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Summer we were contacted by Mr and Mrs. B Richardson , who took over the lease of a ground floor apartment in Pensysarn in October 2002. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Pensysarn with a long lease were worth £290,000. The average ground rent payable was £60 billed yearly. The lease end date was on 7 August 2105. Given that there were 80 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.