The market value of a leasehold property in Penistone depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Statute enables Penistone qualifying lessees to an additional term of 90 years over and above the unexpired term, at a peppercorn rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Penistone,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penistone valuers.
Zachary was the the leasehold owner of a 2 bedroom flat in Penistone on the market with a lease of a few days over 59 years outstanding. Zachary on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Mr and Mrs. D Taylor moved into a one bedroom apartment in Penistone in March 2009. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Penistone with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease expired in 2092. Taking into account 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus professional charges.
In 2012 we were approached by Ms W Carter who, having bought a one bedroom apartment in Penistone in November 2002. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Penistone with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease lapsed in 2081. Taking into account 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.