Penistone leases on domestic deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Penistone will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Penistone leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aaron was the the leasehold owner of a studio apartment in Penistone on the market with a lease of a little over sixty years unexpired. Aaron on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were approached by Mr and Mrs. P Garcia who, having was assigned a lease of a first floor flat in Penistone in October 2005. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative premises in Penistone with an extended lease were valued around £191,400. The average amount of ground rent was £55 billed monthly. The lease lapsed on 18 October 2080. Given that there were 54 years remaining we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of legals.
Mr and Mrs. O Lewis purchased a one bedroom flat in Penistone in March 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Penistone with a long lease were valued around £295,000. The average amount of ground rent was £45 collected monthly. The lease came to a finish on 13 October 2100. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.