The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Penrith may extend the lease for an additional ninety years under legislation. Do give careful consideration before delaying your Penrith lease extension. Putting off that expense today simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold properties in Penrith with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Penrith,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penrith valuers.
16 months ago Tyler, started to get near to the 80-year threshold with the lease on his studio flat in Penrith. In buying his property two decades ago, the length of the lease was of no bearing. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Tyler was able to extend his lease just under the wire last July. Tyler and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have increased by at least £1,050.
Last Summer we were phoned by Mr and Mrs. N Sánchez , who moved into a one bedroom apartment in Penrith in October 1999. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Penrith with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 billed per annum. The lease terminated on 12 May 2104. Considering the 80 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
In 2013 we were called by Dr Lydia Girard who, having owned a purpose-built apartment in Penrith in April 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Penrith with a long lease were valued around £275,000. The average amount of ground rent was £45 collected yearly. The lease concluded in 2093. Taking into account 69 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.