Why you should start your Penley lease extension

Main reasons to commence your Penley lease extension today:

A Penley lease depreciates with the years remaining on the lease.

The only way is down when it comes to Penley lease terms. Penley leaseholds that have a lease term less than than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will go up.

Penley property with a lease extension is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to loan monies with a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be insufficient security.

What makes us experts in Penley lease extensions?

Using our service will provide you better control over the value of your Penley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Penley Lease Extension Case Studies:

Ethan, Penley, Wrexham,

Ethan was the the leasehold proprietor of a conversion flat in Penley on the market with a lease of fraction over sixty years remaining. Ethan on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. 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 initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.

Penley case:

In 2009 we were phoned by Mr and Mrs. T Wilson who, having bought a purpose-built flat in Penley in August 2009. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Similar flats in Penley with an extended lease were valued around £235,200. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 9 October 2092. Having 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.

Penley case:

Last month we were approach by Dr L López , who took over the lease of a basement flat in Penley in April 2004. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Penley with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 11 January 2103. Taking into account 77 years as a residual term we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.