With a residential leasehold property in Penylan, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Leasehold owners in Penylan with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has under eighty years left, under the current statute the freeholder can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Penylan,the lease extension solicitors 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.
In recent months Henry, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Penylan. Having purchased his flat two decades ago, the unexpired term was of minimal importance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Henry extended the lease just in the nick of time last August. Henry and the landlord in the end settled on a premium of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £925.
In 2013 we were contacted by Dr Leon Murphy who, having was assigned a lease of a one bedroom flat in Penylan in April 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative residencies in Penylan with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 billed every twelve months. The lease expiry date was on 16 October 2081. Given that there were 55 years remaining we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus professional charges.
Last Christmas we were approach by Mr and Mrs. W Miller , who bought a ground floor apartment in Penylan in March 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Penylan with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2101. Having 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.