With a long leasehold property in Penistone, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about 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 more expensive particularly once there are less than eighty years left. Anyone in Penistone with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once the lease term has less than eighty years remaining, under the relevant Act the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Penistone,the lease extension lawyers 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.
After lengthy negotiations with the landlord of her garden apartment in Penistone, Kirsty started the lease extension process as the eighty year deadline was rapidly advancing. The legal work was concluded in February 2006. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. H Cook , who took over the lease of a one bedroom apartment in Penistone in July 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Penistone with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced monthly. The lease termination date was in 2101. Taking into account 76 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Dr Y Collins bought a studio apartment in Penistone in August 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Penistone with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 collected monthly. The lease ended in 2090. Having 65 years left we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.