Penryn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Penryn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Penryn you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Yorkshire Building Society |
The lawyers that we work with procure Penryn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Finley was the the leasehold owner of a studio apartment in Penryn being sold with a lease of fraction over fifty eight years outstanding. Finley on an informal basis spoke with his landlord 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 rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Dr S King bought a studio apartment in Penryn in July 2003. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Penryn with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced annually. The lease termination date was in 2101. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Dr Adam Howard bought a first floor apartment in Penryn in November 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable premises in Penryn with 100 year plus lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed in 2081. Considering the 55 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.