Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Pensysarn. Inevitably, the period of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Pensysarn have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Pensysarn lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Pensysarn leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her purpose-built flat in Pensysarn, Tia initiated the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was concluded in April 2010. The freeholder’s fees were restricted to approximately 500 pounds.
Last month we were contacted by Mr Seth Mason , who bought a purpose-built apartment in Pensysarn in May 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Pensysarn with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 collected yearly. The lease terminated on 27 June 2101. Given that there were 75 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Dr P Díaz was assigned a lease of a garden flat in Pensysarn in January 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Pensysarn with 100 year plus lease were valued about £173,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expired on 1 June 2081. Having 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.