Pensysarn leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Pensysarn will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Half a year ago Andrew, started to get close to the 80-year threshold with the lease on his two bedroom flat in Pensysarn. In buying his property two decades ago, the length of the lease was of no bearing. Thankfully, he recognised he needed to take steps soon on a lease extension. Andrew was able to extend his lease just under the wire last January. Andrew and the freeholder ultimately settled on sum of £6,000 . If the lease had dipped lower than eighty years, the sum would have become more costly by a minimum £1,100.
Mr Ibrahim Edwards moved into a ground floor flat in Pensysarn in August 1998. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparative properties in Pensysarn with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed in 2100. Given that there were 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Last year we were e-mailed by Mrs P González , who owned a ground floor apartment in Pensysarn in January 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Pensysarn with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired in 2080. Taking into account 54 years remaining we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.