Main reasons to commence your Penrith lease extension

Main reasons to commence your Penrith lease extension today:

Increase your lease and increase your Penrith property value

Penrith leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Penrith tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Penrith you must check if your lease has between seventy and ninety years left. There are compelling reasons why a Penrith leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold residencies in Penrith with over one hundred 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Mortgage lenders will not issue a mortgage with a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold homes. Many will simply not lend at all once the remaining lease term drops below a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired below 75 years as adequate security. In addition to this being important when selling, it is also relevant where you are seeking to refinance your Penrith home.

What makes us experts in Penrith lease extensions?

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

Penrith Lease Extension Example Cases:

Ryan, Penrith, Cumbria

Last year Ryan, came precariously near to the 80-year threshold with the lease on his first floor flat in Penrith. Having bought his property twenty years previously, the length of the lease was of minimal importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Ryan arranged for a lease extension just under the wire in August. Ryan and the landlord subsequently agreed on a premium of £5,000 . If the lease had slipped lower than 80 years, the premium would have increased by at least £850.

Penrith case:

Dr Kirsty Taylor purchased a garden apartment in Penrith in June 2007. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative flats in Penrith with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish in 2104. Taking into account 78 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.

Penrith case:

Last Christmas we were e-mailed by Mr and Mrs. C Kelly , who was assigned a lease of a newly refurbished flat in Penrith in February 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable flats in Penrith with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2093. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of legals.