Why you should start your Penn lease extension

Why you should start your Penn lease extension today:

Increase your lease and increase your Penn property value

Penn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Penn residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Penn you would be well advised to see if your lease has between seventy and 90 years left. There are good reasons why a Penn flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Penn with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not grant a mortgage with a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are considered to be inadequate for lending purposes.

What makes us experts in Penn lease extensions?

Engaging our service will provide you enhanced control over the value of your Penn leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Penn Lease Extension Example Cases:

Emily, Penn, Staffordshire,

In the wake of 9 months of protracted negotiations with the landlord of her leasehold apartment in Penn, Emily initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The transaction completed in June 2011. The freeholder’s charges were kept to an absolute minimum.

Penn case:

Last year we were approach by Mr and Mrs. F González , who purchased a purpose-built apartment in Penn in July 2007. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical properties in Penn with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2099. Considering the 73 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.

Penn case:

In 2013 we were e-mailed by Mrs M White who, having completed a studio flat in Penn in May 2006. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Penn with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £65 collected yearly. The lease lapsed on 3 May 2088. Taking into account 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.