Penylan leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Penylan will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Penylan with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Penylan,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penylan valuers.
Trailing protracted discussions with the freeholder of her first floor flat in Penylan, Chelsea initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension was concluded in March 2006. The freeholder’s costs were negotiated to a tad over 700 pounds.
In 2009 we were contacted by Dr Jasper Lee who, having acquired a studio apartment in Penylan in January 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Penylan with a long lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease concluded in 2094. Having 69 years left we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Dr K Moreau purchased a newly refurbished apartment in Penylan in August 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable premises in Penylan with a long lease were worth £216,000. The average amount of ground rent was £60 collected every twelve months. The lease expired in 2083. Considering the 58 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.