When it comes to residential leasehold property in Penistone, you are actually buying a right to reside 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 consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Leasehold owners in Penistone with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has less than eighty years left, under the current legislation the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Penistone with in excess of one hundred years outstanding 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Penistone can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Penistone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted correspondence with the freeholder of her studio flat in Penistone, Hollie initiated the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in November 2006. The landlord’s charges were kept to an absolute minimum.
Ms E Khan acquired a ground floor flat in Penistone in August 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Penistone with an extended lease were in the region of £216,000. The average amount of ground rent was £60 billed per annum. The lease end date was in 2084. Given that there were 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
Ms Alice Lefèvre purchased a first floor apartment in Penistone in September 2009. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar premises in Penistone with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2104. Given that there were 78 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.