As the the remaining lease term of a Pentre Halkyn domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Pentre Halkyn will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Pentre Halkyn with more than one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
Lease extensions in Pentre Halkyn can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Pentre Halkyn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Finley, came seriously close to the eighty-year threshold with the lease on his garden apartment in Pentre Halkyn. In buying his property two decades ago, the lease term was of little significance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Finley extended the lease at the eleventh hour last May. Finley and the landlord subsequently agreed on a premium of £6,000 . If he had missed the deadline, the figure would have escalated by at least £1,025.
Dr G Brown completed a newly refurbished apartment in Pentre Halkyn in May 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Identical premises in Pentre Halkyn with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed on 22 May 2106. Taking into account 80 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2009 we were phoned by Mr W Ward who, having owned a purpose-built flat in Pentre Halkyn in January 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Identical properties in Pentre Halkyn with a long lease were worth £275,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2095. Taking into account 69 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.