Pentonville leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Pentonville enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Pentonville you would be well advised to see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Pentonville leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Pentonville lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Pentonville, Katie started the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was finalised in July 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were phoned by Mr A Lewis , who bought a one bedroom flat in Pentonville in February 2008. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Pentonville with an extended lease were in the region of £216,000. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2084. Given that there were 58 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.
An example of a Lease Extension decision for a Pentonville premises is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case was in relation to 1 flat. The unexpired term was 66.8 years.