The market value of a leasehold property in Penshaw depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that all matters can be concluded ahead of the eighty year cut off point. Leasehold Reform legislation enables Penshaw qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Penshaw with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin |
Using our service gives you enhanced control over the value of your Penshaw leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alfie owned a 2 bedroom flat in Penshaw being marketed with a lease of a little over 61 years remaining. Alfie on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mrs Jodie Leroy acquired a first floor flat in Penshaw in January 2002. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative properties in Penshaw with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2080. Considering the 54 years unexpired we estimated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.
In 2010 we were contacted by Mr G Morel who, having acquired a newly refurbished apartment in Penshaw in May 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable flats in Penshaw with a long lease were in the region of £227,800. The average ground rent payable was £45 billed monthly. The lease terminated on 17 January 2091. Taking into account 65 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.