It’s a harsh certainty that a Penn and Ettingshall residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Penn and Ettingshall property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Penn and Ettingshall will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Penn and Ettingshall with over one hundred years outstanding 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Lease extensions in Penn and Ettingshall can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Penn and Ettingshall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David owned a conversion flat in Penn and Ettingshall being sold with a lease of just over 72 years unexpired. David on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to exercise his statutory right. David procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Mr and Mrs. M Laurent who, having owned a one bedroom flat in Penn and Ettingshall in July 2002. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Penn and Ettingshall with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed every twelve months. The lease ran out on 11 February 2100. Having 74 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Dr Omar Pérez owned a ground floor flat in Penn and Ettingshall in May 1996. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Penn and Ettingshall with an extended lease were in the region of £166,400. The average ground rent payable was £60 invoiced per annum. The lease finished on 24 August 2080. Taking into account 54 years left we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.