The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Penrith can extend the lease for an additional ninety years in accordance with statute. Please think carefully before delaying your Penrith lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Penrith with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Penrith,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penrith valuers.
Last year Isaac, started to get near to the 80-year threshold with the lease on his ground floor apartment in Penrith. Having bought his property twenty years ago, the unexpired term was of minimal significance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Isaac was able to extend his lease at the eleventh hour in July. Isaac and the freeholder eventually agreed on a premium of £6,000 . If the lease had gone below 80 years, the amount would have increased by a minimum £1,100.
Mrs S Scott owned a purpose-built apartment in Penrith in July 2005. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Penrith with a long lease were in the region of £184,000. The average ground rent payable was £55 collected annually. The lease expired on 27 November 2078. Considering the 53 years as a residual term we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
Mr and Mrs. K Collins was assigned a lease of a basement flat in Penrith in November 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in Penrith with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease expiry date was on 18 May 2098. Having 73 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.