Unfortunately that a Penylan residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Penylan property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Penylan will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service gives you enhanced control over the value of your Penylan leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a 2 bedroom apartment in Penylan being sold with a lease of a little over 59 years outstanding. Elijah informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mrs B Dupont moved into a recently refurbished apartment in Penylan in January 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable flats in Penylan with 100 year plus lease were worth £230,800. The mid-range ground rent payable was £60 billed per annum. The lease lapsed in 2086. Having 60 years outstanding we estimated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of fees.
Last October we were called by Mr and Mrs. B Wright , who bought a studio apartment in Penylan in October 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Penylan with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 billed monthly. The lease lapsed in 2106. Having 80 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.