Main reasons to start your Penrith lease extension

Top reasons for lease extension now:

A Penrith lease depreciates with the years remaining on the lease.

Penrith leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Flat owners in Penrith will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders will not issue a mortgage on a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. As many flats in Penrith were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Penrith lease extensions?

Irrespective of whether you are a tenant or a landlord in Penrith,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penrith valuers.

Penrith Lease Extension Case Summaries:

Kyle, Penrith, Cumbria

In 2014 Kyle, started to get close to the 80-year mark with the lease on his first floor flat in Penrith. Having purchased his property two decades ago, the lease term was of little relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Kyle arranged for a lease extension just under the wire in June. Kyle and the freeholder via the management company ultimately settled on a premium of £5,000 . If he had missed the deadline, the figure would have become more costly by at least £875.

Penrith case:

In 2012 we were approached by Mr F Petit who, having acquired a garden flat in Penrith in July 2007. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Penrith with an extended lease were valued around £223,400. The mid-range ground rent payable was £60 billed every twelve months. The lease concluded in 2085. Considering the 59 years outstanding we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of legals.

Penrith case:

Last Summer we were contacted by Mr and Mrs. L Roberts , who purchased a recently refurbished flat in Penrith in April 2002. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical residencies in Penrith with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease ran out in 2105. Given that there were 79 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.