There is no doubt about it a leasehold property in Pensysarn is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Pensysarn will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify 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.
Leasehold properties in Pensysarn with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Pensysarn leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Toby, came dangerously near to the 80-year mark with the lease on his first floor apartment in Pensysarn. In buying his property 19 years ago, the length of the lease was of little interest. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Toby was able to extend his lease just in the nick of time in May. Toby and the freeholder subsequently settled on the final figure of £6,000 . If the lease had gone below 80 years, the price would have become more exhorbitant by a minimum £1,075.
In 2011 we were approached by Mr Theo Campbell who, having completed a garden apartment in Pensysarn in November 2002. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable properties in Pensysarn with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ended on 11 January 2088. Considering the 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of legals.
Dr A Taylor purchased a first floor flat in Pensysarn in June 1998. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative premises in Pensysarn with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out in 2098. Considering the 73 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.