Chances are that if you own a flat in Penistone you actually own a long leasehold interest over your property
Leasehold residencies in Penistone with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Penistone can be a difficult process. We recommend you secure guidance 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 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.
Two years ago Ben, came seriously close to the eighty-year threshold with the lease on his leasehold apartment in Penistone. Having purchased his home two decades ago, the lease term was of minimal significance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Ben extended the lease at the eleventh hour last August. Ben and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had dropped to less than eighty years, the sum would have escalated by a minimum £875.
Last Autumn we were e-mailed by Ms Danielle Khan , who moved into a one bedroom apartment in Penistone in November 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Penistone with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed yearly. The lease finished on 12 May 2093. Given that there were 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
In 2014 we were approached by Mr and Mrs. D Gunderson who, having bought a basement apartment in Penistone in October 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Penistone with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease ended in 2082. Given that there were 57 years unexpired we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.