It’s a harsh truth that a Pensysarn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Pensysarn property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Pensysarn will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Edward, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Pensysarn. In buying his flat 19 years previously, the lease term was of little importance. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Edward was able to extend his lease at the eleventh hour in May. Edward and the freeholder subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the price would have gone up by at least £1,075.
In 2010 we were called by Mrs F Clarke who, having was assigned a lease of a one bedroom flat in Pensysarn in January 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical flats in Pensysarn with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 collected every twelve months. The lease expired on 15 April 2086. Having 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.
Mr Freddie André moved into a studio flat in Pensysarn in June 2003. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative premises in Pensysarn with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished on 18 June 2097. Given that there were 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.