Why you should commence your Penrith lease extension

Top reasons for lease extension now:

A Penrith lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Penrith is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed prior to the 80 year cut off point. Current legislation enables Penrith qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lenders may not grant a mortgage on a short lease

Nearly all banks and building societies will not lend on a lease with less than seventy years left to run - although this varies from lender to lender. A purchaser will no doubt find it difficult to obtain a mortgage and this will result in your Penrith property being difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Penrith?

Regardless of whether you are a tenant or a freeholder in Penrith,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penrith valuers.

Penrith Lease Extension Case Summaries:

Laura, Penrith, Cumbria,

Trailing unsuccessful negotiations with the landlord of her leasehold flat in Penrith, Laura started the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work completed in October 2005. The landlord’s fees were kept to an absolute minimum.

Penrith case:

In 2012 we were phoned by Mr and Mrs. A François who, having owned a one bedroom flat in Penrith in June 2007. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Penrith with 100 year plus lease were valued about £198,800. The average ground rent payable was £55 billed every twelve months. The lease concluded in 2081. Having 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.

Penrith case:

Last Christmas we were called by Ms Sophia Martínez , who moved into a garden flat in Penrith in July 1996. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable flats in Penrith with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out on 22 May 2101. Having 75 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.