The market value of Penistone leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than 80 years
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Penistone can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Penistone lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel was the the leasehold proprietor of a studio apartment in Penistone on the market with a lease of a little over fifty eight years outstanding. Nathaniel on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr Henry Pérez who, having moved into a basement apartment in Penistone in June 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Similar properties in Penistone with 100 year plus lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated on 8 July 2081. Given that there were 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
In 2013 we were approached by Mr and Mrs. P Morris who, having owned a one bedroom apartment in Penistone in June 2010. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Penistone with an extended lease were in the region of £295,000. The average ground rent payable was £50 collected quarterly. The lease ran out in 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.