As the the remaining lease term of a Penyffordd residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Penyffordd will qualify for this right; nevertheless a lawyer should be able to advise if you are eligible 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.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| Virgin |
Lease extensions in Penyffordd can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Penyffordd lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold owner of a high value flat in Penyffordd on the market with a lease of a little over sixty years left. Max on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last month we were called by Ms A Laurent , who bought a first floor apartment in Penyffordd in June 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Penyffordd with an extended lease were worth £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2102. Considering the 76 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last month we were contacted by Mr and Mrs. O Pérez , who bought a first floor apartment in Penyffordd in March 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Penyffordd with a long lease were in the region of £257,800. The average ground rent payable was £65 billed monthly. The lease concluded in 2091. Given that there were 65 years left we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.