It’s a harsh truth that a Pentonville residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Pentonville property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Pentonville will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Pentonville,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 Pentonville valuers.
Following lengthy discussions with the freeholder of her purpose-built apartment in Pentonville, Georgia initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was concluded in March 2005. The landlord’s fees were kept to an absolute minimum.
In 2012 we were called by Dr H Johnson who, having took over the lease of a purpose-built flat in Pentonville in January 2001. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar homes in Pentonville with a long lease were in the region of £285,000. The average amount of ground rent was £45 billed annually. The lease lapsed on 24 May 2096. Considering the 71 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
An example of a Lease Extension case for a Pentonville flat 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 related to 1 flat. The unexpired term was 66.8 years.