Unfortunately that a Penn and Ettingshall residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Penn and Ettingshall property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Most flat owners in Penn and Ettingshall will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with undertake Penn and Ettingshall 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 conveyancing solicitor we work with provide it.
Kyle was the the leasehold owner of a studio apartment in Penn and Ettingshall being sold with a lease of fraction over fifty eight years unexpired. Kyle informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were phoned by Ms Stephanie Carter , who was assigned a lease of a newly refurbished apartment in Penn and Ettingshall in July 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Penn and Ettingshall with 100 year plus lease were in the region of £220,400. The average amount of ground rent was £45 billed annually. The lease lapsed on 18 September 2089. Taking into account 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Last Summer we were approach by Mr and Mrs. F Laurent , who took over the lease of a ground floor flat in Penn and Ettingshall in July 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Penn and Ettingshall with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease ended on 2 September 2100. Given that there were 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.