Penwortham leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Penwortham will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Retaining our service will provide you increased control over the value of your Penwortham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the freeholder of her garden flat in Penwortham, Sian initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in August 2009. The landlord’s fees were restricted to a tad over 650 pounds.
Mr Kyle James moved into a first floor flat in Penwortham in March 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Penwortham with a long lease were valued around £275,000. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2094. Given that there were 68 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2010 we were phoned by Dr Felix Davies who, having owned a one bedroom flat in Penwortham in September 1996. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Penwortham with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 23 October 2083. Taking into account 57 years remaining we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.