Why you should start your Penwortham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Penwortham property value

The only way is down when it comes to Penwortham lease terms. Penwortham flats that have a remaining term lower than 80 years will reduce in value even faster, and the cost to extend your lease will rise.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Penwortham with more than 100 years outstanding on the lease are often 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 service charges warrant it.

Lenders may decide not to loan monies with a short lease

Nearly all mortgage lenders will not lend on a lease with less than seventy years unexpired - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this could result in your Penwortham property becoming difficult to dispose of or remortgage.

Get in touch with one of our Penwortham lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Penwortham,the lease extension experts 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 Case Studies:

Omar, Penwortham, Lancashire

During the course of the last few months Omar, started to get near to the eighty-year threshold with the lease on his basement flat in Penwortham. Having purchased his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he noticed he needed to take action soon on a lease extension. Omar was able to extend his lease at the eleventh hour in September. Omar and the landlord eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £1,025.

Penwortham case:

In 2009 we were phoned by Dr I Gómez who, having took over the lease of a first floor apartment in Penwortham in September 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Penwortham with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 15 February 2082. Taking into account 56 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.

Penwortham case:

Mr Leon King was assigned a lease of a first floor apartment in Penwortham in September 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Penwortham with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 collected annually. The lease ran out on 21 April 2102. Given that there were 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.