Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Penylan. Clearly, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Penylan have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Please give careful deliberation before putting off your Penylan lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Penylan with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Using our service will provide you better 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 wish 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.
After protracted negotiations with the freeholder of her ground floor flat in Penylan, Hannah initiated the lease extension process as the eighty year threshold was fast approaching. The legal work was concluded in February 2008. The landlord’s costs were kept to an absolute minimum.
In 2011 we were e-mailed by Mrs Shannon Rogers who, having acquired a purpose-built flat in Penylan in April 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Penylan with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2075. Having 50 years remaining we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
Mr D González purchased a ground floor flat in Penylan in April 2012. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical homes in Penylan with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 billed yearly. The lease elapsed in 2095. Having 70 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.