Penwortham leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Penwortham will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Penwortham with more than one hundred 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Penwortham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Penwortham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry was the the leasehold owner of a 2 bedroom flat in Penwortham on the market with a lease of a little over 59 years unexpired. Harry informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Spring we were contacted by Ms Danielle Girard , who owned a ground floor apartment in Penwortham in June 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar homes in Penwortham with a long lease were valued around £184,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded in 2078. Taking into account 53 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
Last June we were phoned by Mrs Naomi Taylor , who bought a one bedroom flat in Penwortham in July 1997. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Penwortham with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease expired on 22 May 2098. Considering the 73 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.