It’s a harsh truth that a Penn and Ettingshall residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Penn and Ettingshall property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Penn and Ettingshall will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Penn and Ettingshall with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 |
| Yorkshire 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. |
The conveyancers that we work with handle 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.
After lengthy correspondence with the landlord of her purpose-built flat in Penn and Ettingshall, Hannah initiated the lease extension process as the eighty year threshold was quickly nearing. The transaction was finalised in March 2015. The landlord’s fees were kept to an absolute minimum.
In 2012 we were contacted by Dr B Hall who, having was assigned a lease of a garden apartment in Penn and Ettingshall in February 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Penn and Ettingshall with an extended lease were worth £210,600. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded on 17 July 2088. Taking into account 62 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.
Mr and Mrs. I Lefèvre moved into a basement flat in Penn and Ettingshall in June 1998. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in Penn and Ettingshall with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease expired in 2099. Considering the 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.