Penrith Lease Extension - Free Consultation

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Top reasons for Penrith lease extension


Top reasons for lease extension now:

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

On the balance of probabilities if you own a flat in Penrith you actually own a long leasehold interest over your property

Penrith property with a lease extension is almost the same value as a freehold

Leasehold residencies 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions will not finance a property with a short lease

Mortgage lenders have specific criteria when lending funds charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term slips beneath a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining below 75 years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Penrith property.

Lender Requirement
Barclays plc Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.
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.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Penrith lease extensions?

Irrespective of whether you are a tenant or a freeholder in Penrith,the lease extension experts that we work with will always be happy 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 Example Cases:

Isobel, Penrith, Cumbria,

Following unsuccessful negotiations with the freeholder of her ground floor flat in Penrith, Isobel commenced the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was concluded in February 2007. The freeholder’s charges were kept to an absolute minimum.

Penrith case:

Mr and Mrs. J Rivera bought a one bedroom apartment in Penrith in January 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Penrith with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2099. Given that there were 78 years outstanding we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of expenses.

Penrith case:

In 2014 we were contacted by Mr T Bernard who, having owned a one bedroom flat in Penrith in October 1999. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Penrith with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 invoiced monthly. The lease finished on 27 April 2088. Having 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus legals.