Pencader leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher amount will be due. Leasehold owners in Pencader will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Pencader leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jude, came very close to the eighty-year threshold with the lease on his garden apartment in Pencader. Having bought his flat twenty years previously, the unexpired term was of minimal relevance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Jude was able to extend his lease just under the wire in September. Jude and the freeholder via the managing agents subsequently settled on sum of £6,000 . If he not met the deadline, the price would have gone up by at least £1,050.
Last Winter we were contacted by Mr and Mrs. U Hernández , who took over the lease of a ground floor apartment in Pencader in March 2003. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar properties in Pencader with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish on 16 May 2097. Having 71 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr Jacob Stewart purchased a studio flat in Pencader in February 1999. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Pencader with an extended lease were worth £254,200. The average ground rent payable was £60 collected monthly. The lease end date was on 17 July 2077. Having 51 years remaining we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.