Main reasons to commence your Penrith lease extension

Main reasons to start your Penrith lease extension today:

Increase your lease and increase your Penrith property value

Penrith leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Penrith residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Penrith you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not grant a mortgage with a short lease

Nearly all mortgage lenders will not lend on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will no doubt find it difficult in obtaining a mortgage and this will result in your Penrith property being difficult to sell or to obtain finance on.

What makes us experts in Penrith lease extensions?

Retaining our service gives you increased control over the value of your Penrith leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers 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:

Ethan, Penrith, Cumbria

Last year Ethan, started to get near to the 80-year mark with the lease on his leasehold flat in Penrith. Having purchased his home 19 years ago, the unexpired term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Ethan arranged for a lease extension just under the wire last July. Ethan and the freeholder via the management company in the end agreed on an amount of £6,000 . If he not met the deadline, the premium would have escalated by at least £850.

Penrith case:

In 2012 we were called by Ms D Norbert who, having moved into a recently refurbished flat in Penrith in February 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar flats in Penrith with an extended lease were worth £280,000. The average amount of ground rent was £45 invoiced yearly. The lease finished on 21 October 2096. Taking into account 70 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.

Penrith case:

Mrs U Howard took over the lease of a ground floor apartment in Penrith in May 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Penrith with 100 year plus lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced annually. The lease ended on 19 January 2085. Having 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including legals.