Unfortunately that a Penrith residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Penrith property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Penrith will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you enhanced control over the value of your Penrith leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her ground floor apartment in Penrith, Morgan initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in August 2007. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. V Roberts owned a purpose-built flat in Penrith in January 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Penrith with a long lease were in the region of £191,400. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2080. Considering the 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.
In 2011 we were called by Mr and Mrs. H Simon who, having moved into a purpose-built flat in Penrith in April 2008. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar flats in Penrith with an extended lease were valued about £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 20 January 2100. Taking into account 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.