Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Penistone. Inevitably, the term of lease left reduces as time goes by. This is often ignored and only becomes a problem when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Penistone have the right to extend the lease for an additional ninety years in accordance with legislation. Please give due consideration before delaying your Penistone lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold properties in Penistone with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Penistone can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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.
Last year William, came seriously near to the eighty-year mark with the lease on his first floor flat in Penistone. Having purchased his property twenty years previously, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take action soon on Extending the lease. William was able to extend his lease just under the wire last June. William and the freeholder ultimately agreed on an amount of £6,000 . If the lease had slipped below eighty years, the amount would have escalated by at least £900.
Mr and Mrs. V Bernard bought a newly refurbished apartment in Penistone in October 1999. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Identical premises in Penistone with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 billed yearly. The lease terminated on 27 May 2094. Given that there were 69 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Winter we were approach by Mr and Mrs. N Nelson , who completed a first floor apartment in Penistone in March 2000. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Penistone with an extended lease were valued around £216,000. The average amount of ground rent was £60 invoiced yearly. The lease ended in 2083. Taking into account 58 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.