As the the remaining lease term of a Pentre Halkyn residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Pentre Halkyn will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify for a lease extension. In limited 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 Pentre Halkyn with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Pentre Halkyn,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Pentre Halkyn valuers.
Tyler owned a high value flat in Pentre Halkyn being marketed with a lease of a little over 61 years outstanding. Tyler informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler procured expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Ms T Martin acquired a first floor apartment in Pentre Halkyn in April 1998. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Pentre Halkyn with an extended lease were worth £181,600. The average ground rent payable was £55 collected yearly. The lease lapsed on 13 February 2077. Having 52 years outstanding we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.
In 2009 we were approached by Dr Alisha Walker who, having owned a newly refurbished flat in Pentre Halkyn in February 2005. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparative flats in Pentre Halkyn with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2097. Given that there were 72 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.