There is no doubt about it a leasehold property in Penistone is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Penistone will qualify for this right; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Penistone 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 conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her one bedroom flat in Penistone, Lily started the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work was finalised in March 2009. The freeholder’s costs were negotiated to approximately 700 pounds.
Mrs Jennifer Díaz took over the lease of a ground floor apartment in Penistone in April 1997. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar premises in Penistone with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed every twelve months. The lease finished on 16 August 2092. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including professional charges.
In 2011 we were contacted by Ms F Mitchell who, having took over the lease of a one bedroom apartment in Penistone in September 2005. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical homes in Penistone with a long lease were worth £201,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 22 November 2081. Considering the 56 years remaining we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.