The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Penyffordd have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give careful consideration before delaying your Penyffordd lease extension. Postponing that expense now simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Penyffordd with over 100 years remaining 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Penyffordd 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.
In recent months Rory, came seriously close to the eighty-year mark with the lease on his ground floor apartment in Penyffordd. In buying his flat 19 years previously, the length of the lease was of no importance. by good luck, he became aware that he needed to take action soon on a lease extension. Rory was able to extend his lease just under the wire in September. Rory and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,150.
Mr and Mrs. Y Reed completed a first floor apartment in Penyffordd in April 2007. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar properties in Penyffordd with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed on 8 April 2097. Taking into account 71 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Dr W Evans bought a studio flat in Penyffordd in November 1996. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Identical residencies in Penyffordd with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 2 September 2086. Taking into account 60 years remaining we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 plus costs.