Why you should start your Penwortham lease extension

Top reasons for lease extension now:

A Penwortham lease depreciates with the years remaining on the lease.

Unfortunately that a Penwortham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Penwortham property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Penwortham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.

An extended lease is almost the same value as a freehold

Leasehold residencies in Penwortham with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

Banks and building societies are inclined not grant a mortgage on short residential leases. You most probably experience difficulties where you wish to sell your flat in Penwortham if the remaining lease term is under the criteria set by the majority of mortgage companies. Different mortgage companies have different criteria but in the main theyrequire an unexpired term of at least 65 years.

What makes us experts in Penwortham lease extensions?

Regardless of whether you are a tenant or a landlord in Penwortham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penwortham valuers.

Penwortham Lease Extension Example Cases:

Isabella, Penwortham, Lancashire,

Subsequent to lengthy negotiations with the landlord of her two bedroom apartment in Penwortham, Isabella initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was finalised in March 2013. The freeholder’s costs were restricted to slightly above 450 GBP.

Penwortham case:

Ms Imogen Morel took over the lease of a first floor apartment in Penwortham in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Penwortham with a long lease were valued around £295,000. The mid-range amount of ground rent was £50 collected quarterly. The lease termination date was on 3 September 2101. Taking into account 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.

Penwortham case:

In 2013 we were phoned by Mrs Tia Brown who, having completed a basement flat in Penwortham in September 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Penwortham with a long lease were worth £250,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished on 21 April 2090. Having 64 years remaining we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.