Main reasons to commence your Penley lease extension

Main reasons to start your Penley lease extension today:

Increase your lease and increase your Penley property value

Penley leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Penley will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Penley with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not issue a mortgage with a short lease

Most mortgage lenders will not grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Penley property being difficult to dispose of or remortgage.

Get in touch with one of our Penley lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Penley,the lease extension experts 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 Penley valuers.

Penley Lease Extension Case Studies:

Milo, Penley, Wrexham

Last year Milo, came seriously near to the eighty-year mark with the lease on his purpose- built flat in Penley. In buying his property two decades ago, the lease term was of little bearing. by good luck, he became aware that he would soon be paying an escalated premium for Extending the lease. Milo extended the lease just under the wire in April. Milo and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If the lease had dipped to less than 80 years, the sum would have gone up by a minimum £1,025.

Penley case:

Last year we were e-mailed by Mr Teddy Thompson , who moved into a one bedroom apartment in Penley in May 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative properties in Penley with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2080. Having 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus fees.

Penley case:

In 2011 we were called by Mr and Mrs. G André who, having was assigned a lease of a one bedroom apartment in Penley in February 2006. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar properties in Penley with an extended lease were in the region of £227,800. The average ground rent payable was £45 invoiced annually. The lease concluded in 2091. Taking into account 65 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.