It’s a harsh truth that a Penistone residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Penistone property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Penistone will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| TSB |
Lease extensions in Penistone can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Penistone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a studio apartment in Penistone being marketed with a lease of fraction over 61 years left. Riley informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were e-mailed by Dr O Clarke who, having acquired a one bedroom flat in Penistone in October 2000. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Penistone with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2105. Given that there were 79 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Mr and Mrs. A Martin moved into a one bedroom apartment in Penistone in September 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Penistone with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2094. Considering the 68 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.