When it comes to residential leasehold property in Penylan, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Anyone in Penylan with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has under eighty years left, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Penylan,the lease extension experts that we work with will always be prepared 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.
Luca was the the leasehold owner of a studio flat in Penylan being sold with a lease of a few days over sixty years unexpired. Luca on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and secured satisfactory deal informally and readily saleable.
In 2014 we were contacted by Mr Felix Bertrand who, having was assigned a lease of a studio apartment in Penylan in November 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Penylan with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 invoiced annually. The lease termination date was on 15 July 2093. Taking into account 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including fees.
Last Autumn we were contacted by Mr and Mrs. J Hill , who was assigned a lease of a ground floor flat in Penylan in August 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Penylan with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 28 January 2082. Having 56 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.