With a domestic leasehold premises in Penwortham, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Penwortham with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Penwortham with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with undertake Penwortham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Aarav owned a high value flat in Penwortham on the market with a lease of a little over 59 years left. Aarav on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were called by Mr and Mrs. V Garcia who, having completed a purpose-built apartment in Penwortham in May 2007. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar flats in Penwortham with an extended lease were worth £200,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 1 October 2102. Considering the 77 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Last month we were approach by Dr E Harris , who owned a ground floor apartment in Penwortham in October 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Penwortham with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 collected monthly. The lease finished on 26 November 2091. Given that there were 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.