Penkridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Penkridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Penkridge you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Penkridge,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penkridge valuers.
During the course of the last few months Toby, started to get near to the eighty-year mark with the lease on his ground floor flat in Penkridge. Having bought his home 18 years ago, the length of the lease was of no importance. Fortunately, he realised he needed to take steps soon on Extending the lease. Toby was able to extend his lease just under the wire in June. Toby and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had gone to less than eighty years, the sum would have gone up by a minimum £975.
In 2012 we were phoned by Mr and Mrs. C Wilson who, having owned a studio apartment in Penkridge in June 2010. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical residencies in Penkridge with an extended lease were valued around £240,600. The mid-range amount of ground rent was £60 billed annually. The lease finished in 2088. Given that there were 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.
In 2011 we were contacted by Mr G Baker who, having purchased a garden apartment in Penkridge in January 1995. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Identical properties in Penkridge with an extended lease were worth £174,200. The average amount of ground rent was £55 collected annually. The lease finished in 2077. Having 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.