Penyffordd leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Penyffordd enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Penyffordd you should check if your lease has between 70 and ninety years left. There are compelling reasons why a Penyffordd flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Penyffordd with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Penyffordd leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her ground floor apartment in Penyffordd, Jennifer commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension was concluded in January 2011. The landlord’s fees were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. H Turner , who took over the lease of a one bedroom flat in Penyffordd in November 2010. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Penyffordd with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed per annum. The lease elapsed on 22 July 2103. Taking into account 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Summer we were called by Mrs Nicole Roberts , who completed a studio flat in Penyffordd in October 2000. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical premises in Penyffordd with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 invoiced annually. The lease lapsed on 1 January 2092. Given that there were 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus expenses.