Penley leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Penley will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same 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 in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Penley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Ali was the the leasehold owner of a conversion apartment in Penley being sold with a lease of just over 72 years left. Ali informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. M Ricardo who, having purchased a ground floor flat in Penley in April 2002. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Penley with a long lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 3 July 2077. Taking into account 52 years outstanding we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 not including legals.
Last Winter we were approach by Mr and Mrs. G Rose , who was assigned a lease of a garden apartment in Penley in April 1996. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable residencies in Penley with 100 year plus lease were valued about £218,000. The mid-range amount of ground rent was £45 billed yearly. The lease ended in 2088. Considering the 63 years left we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of legals.