On the balance of probabilities if you own a flat in Penrith you actually own a long leasehold interest over your property
Leasehold premises in Penrith with more than one hundred years left on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Penrith leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her purpose-built flat in Penrith, Danielle initiated the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was concluded in July 2006. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were called by Mr and Mrs. C Leroy , who moved into a studio apartment in Penrith in July 1999. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative residencies in Penrith with a long lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out on 12 May 2092. Taking into account 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including expenses.
Last Summer we were called by Mr and Mrs. A Nelson , who moved into a basement apartment in Penrith in March 2006. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Penrith with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 billed quarterly. The lease ran out in 2081. Taking into account 55 years left we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus legals.