When it comes to domestic leasehold property in Penn, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Penn with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Penn with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Penn can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 dealing with Penn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold owner of a studio flat in Penn being sold with a lease of fraction over 59 years remaining. Luca on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Dr I Lefèvre was assigned a lease of a one bedroom apartment in Penn in January 2000. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Penn with 100 year plus lease were valued about £206,200. The average ground rent payable was £60 billed annually. The lease concluded on 27 July 2081. Taking into account 56 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
Mr and Mrs. K Patel moved into a one bedroom flat in Penn in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Penn with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed on 7 October 2101. Having 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.