The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Penrith can extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your Penrith lease extension. Shelving that expense now simply increases the price you will eventually be required to pay for a lease extension.
Leasehold premises in Penrith with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Penrith can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Penrith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo owned a studio flat in Penrith on the market with a lease of just over 59 years outstanding. Leo informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were phoned by Mr R Morris who, having took over the lease of a studio apartment in Penrith in November 2005. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical properties in Penrith with 100 year plus lease were valued about £208,600. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2083. Having 57 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of costs.
Last Summer we were called by Mr and Mrs. R Moreau , who took over the lease of a purpose-built apartment in Penrith in August 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Penrith with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded in 2103. Having 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.