Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Penrith. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Penrith have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give careful deliberation before delaying your Penrith lease extension. Holding off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold properties in Penrith with more than one hundred years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Penrith can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Penrith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the landlord of her two bedroom apartment in Penrith, Anna initiated the lease extension process as the eighty year deadline was fast nearing. The legal work was finalised in November 2011. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Mrs V Jackson who, having bought a newly refurbished apartment in Penrith in February 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable premises in Penrith with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded in 2099. Taking into account 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
In 2014 we were contacted by Mr D Díaz who, having purchased a one bedroom apartment in Penrith in May 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Penrith with an extended lease were valued about £240,600. The mid-range amount of ground rent was £60 billed per annum. The lease lapsed in 2088. Given that there were 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.