Why you should commence your Penrith lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold flat or house in Penrith is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Penrith will qualify for this right; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Penrith with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies will not lend with a short lease

Nearly all banks and building societies require a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Even if you don't require a mortgage, you should be aware that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they are unable to secure a mortgage, then the value of the property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

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

Using our service will provide you increased control over the value of your Penrith leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Penrith Lease Extension Example Cases:

Aarav, Penrith, Cumbria

Last year Aarav, came precariously close to the 80-year mark with the lease on his studio apartment in Penrith. In buying his home two decades ago, the unexpired term was of no significance. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Aarav arranged for a lease extension just ahead of time last January. Aarav and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had gone lower than 80 years, the sum would have become more costly by a minimum £1,075.

Penrith case:

In 2013 we were phoned by Mr and Mrs. C Harris who, having acquired a studio apartment in Penrith in February 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Penrith with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2077. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.

Penrith case:

In 2010 we were phoned by Ms Natasha Díaz who, having completed a one bedroom apartment in Penrith in March 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Penrith with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded on 25 April 2097. Given that there were 71 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.