Why you should commence your Penn lease extension

Top reasons for lease extension now:

A Penn leasehold property depreciates with the years remaining on the lease.

Penn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Penn tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Penn you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lenders will not issue a mortgage on a short lease

Banks and building societies will not grant a mortgage on short residential leases. You most probably encounter problems where you wish to sell your flat in Penn if the remaining term of your lease is below the criteria set by most lenders. Different mortgage companies have varying criteria but in the main they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Penn lease extensions?

Lease extensions in Penn can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 a wealth of experience procuring Penn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Penn Lease Extension Example Cases:

Jackson, Penn, Staffordshire

In 2014 Jackson, came seriously near to the eighty-year threshold with the lease on his leasehold apartment in Penn. In buying his property two decades ago, the lease term was of little interest. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Jackson extended the lease just under the wire last September. Jackson and the freeholder eventually settled on the final figure of £5,500 . If the lease had descended lower than eighty years, the amount would have escalated by at least £1,075.

Penn case:

Dr Lucas Girard was assigned a lease of a one bedroom apartment in Penn in March 2010. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Penn with an extended lease were worth £196,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded on 13 August 2080. Having 54 years unexpired we calculated the compensation to the landlord for the lease extension to be within £35,200 and £40,600 not including fees.

Penn case:

Mr Cameron Brooks completed a basement flat in Penn in March 2004. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative premises in Penn with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ended on 2 July 2100. Considering the 74 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.