Main reasons to start your Penzance lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/penzance">Penzance</a> leasehold property depreciates with the years remaining on the lease.
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<p> Unfortunately that a Penzance residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Penzance property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most flat owners in Penzance will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
<h4>Penzance property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Penzance with in excess of 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it. <h4>Lending institutions will not loan monies with a short lease</h4> Banks and building societies vary in their lending criteria. Some set the bar at 75 years left on the lease; others may be prepared to lend with anything over seventy years. Below 60 years, it may be difficult to get a mortgage in the first place.
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<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Yorkshire Building Society</td>
<td> 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.
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What makes us experts in Penzance lease extensions?
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<p> Retaining our service will provide you enhanced control over the value of your Penzance leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Penzance Lease Extension Example Cases:
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<h5> Emma, Penzance, Cornwall,</h5>
<p> After protracted correspondence with the freeholder of her leasehold flat in Penzance, Emma commenced the lease extension process as the 80 year threshold was rapidly approaching. The lease extension completed in July 2013. The freeholder’s charges were kept to an absolute minimum.
<h5>Penzance case:</h5>
<p> Dr Caleb Thomas moved into a first floor apartment in Penzance in May 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative properties in Penzance with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease end date was in 2080. Taking into account 54 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.
<h5>Penzance case:</h5>
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In 2011 we were called by Mr Nathaniel Nelson who, having completed a basement apartment in Penzance in June 2011. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable properties in Penzance with an extended lease were in the region of £232,800. The average amount of ground rent was £45 invoiced per annum. The lease lapsed on 24 January 2091. Considering the 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
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