With a domestic leasehold property in Penrith, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Penrith with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Penrith with more than 100 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Penrith leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a conversion flat in Penrith on the market with a lease of just over 61 years left. Dexter informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr Edward Cook who, having took over the lease of a garden flat in Penrith in March 2007. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar flats in Penrith with a long lease were in the region of £285,000. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2097. Taking into account 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.
Mrs Paige Martinez moved into a newly refurbished apartment in Penrith in October 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Penrith with a long lease were worth £225,800. The average amount of ground rent was £60 billed yearly. The lease expired on 7 February 2086. Having 60 years remaining we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus legals.