The re-sale value of a leasehold property in Penylan is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised prior to the eighty year cut off point. Statute enables Penylan qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Engaging our service will provide you increased control over the value of your Penylan leasehold, as your property will be more valuable and saleable in terms of lease length should you want 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.
Sebastian owned a conversion flat in Penylan being marketed with a lease of a little over 72 years outstanding. Sebastian informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. J Mason bought a garden apartment in Penylan in September 2008. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Penylan with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease lapsed on 25 November 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including legals.
Last Christmas we were called by Ms Niamh Bonnet , who purchased a basement flat in Penylan in April 1997. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative residencies in Penylan with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 billed annually. The lease expiry date was in 2087. Given that there were 61 years left we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus professional charges.