There is no doubt about it a leasehold flat or house in Penrith is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 125 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Penrith will qualify for this right; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Penrith with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Penrith,the lease extension experts 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 Penrith valuers.
Last year Sam, started to get close to the 80-year mark with the lease on his basement flat in Penrith. In buying his flat 19 years previously, the lease term was of little importance. Fortunately, he noticed he needed to take action soon on Extending the lease. Sam extended the lease at the eleventh hour last January. Sam and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,150.
In 2010 we were e-mailed by Mr C Gunderson who, having owned a basement apartment in Penrith in January 2012. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative flats in Penrith with a long lease were worth £174,200. The mid-range ground rent payable was £55 collected monthly. The lease expired on 3 April 2076. Given that there were 51 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Mr G Ali took over the lease of a purpose-built flat in Penrith in November 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar residencies in Penrith with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 19 October 2096. Given that there were 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.