He died childless and was succeeded by his younger brother, the fourth Baronet.
In 1783, ten years before he succeeded his father in the baronetcy, he was raised to the Peerage of Ireland as Baron Muncaster, with remainder in default of male issue of his own to his younger brother Lowther Pennington and the heirs male of his body.
Lord Muncaster died without male issue and was succeeded (in the barony according to the special remainder) by his younger brother, the second Baron.
The titles descended from father to son until the early death of his grandson, the fourth Baron, in 1862.
On 11 June 1898 he was created Baron Muncaster, of Muncaster in the County of Cumberland, in the Peerage of the United Kingdom, which entitled him to an automatic seat in the House of Lords.