The closer a domestic lease in Penrith nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Penrith will meet the qualifying criteria; however a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Penrith with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges justify it.
Lender | Requirement |
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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. |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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 conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Penrith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a 2 bedroom apartment in Penrith being marketed with a lease of a few days over sixty years unexpired. Teddy on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were phoned by Mr S Mercier who, having took over the lease of a one bedroom apartment in Penrith in November 2009. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical residencies in Penrith with a long lease were valued about £235,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
In 2012 we were called by Dr Omar Cook who, having took over the lease of a first floor apartment in Penrith in February 1998. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Penrith with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed monthly. The lease terminated on 6 June 2076. Given that there were 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.