Unfortunately that a Penrith residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Penrith property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. The majority of flat owners in Penrith will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Penrith with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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 |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Penrith,the lease extension lawyers that we work with will always be prepared 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.
Last October Jack, started to get near to the eighty-year mark with the lease on his two bedroom flat in Penrith. Having purchased his flat twenty years ago, the length of the lease was of little concern. Thankfully, he recognised he needed to take steps soon on a lease extension. Jack extended the lease just in the nick of time in May. Jack and the landlord ultimately settled on the final figure of £5,000 . If he not met the deadline, the amount would have increased by a minimum £1,025.
Last month we were e-mailed by Mr P Brooks , who completed a one bedroom flat in Penrith in August 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Penrith with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 billed yearly. The lease expired on 18 October 2091. Given that there were 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.
In 2012 we were e-mailed by Dr I Peterson who, having completed a basement flat in Penrith in July 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Penrith with a long lease were valued around £201,200. The average ground rent payable was £55 collected per annum. The lease ended on 20 January 2080. Having 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.