Main reasons to start your Penryn lease extension

Why you should start your Penryn lease extension today:

A Penryn lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Penryn residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Penryn property prices.Once your lease gets to 85ish years, you need to start considering 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 premium will be payable. The majority of flat owners in Penryn will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

Penryn property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Many mortgage lenders will be unwilling to grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Penryn property being difficult to dispose of or refinance.

What makes us experts in Penryn lease extensions?

Retaining our service gives you better control over the value of your Penryn leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.

Penryn Lease Extension Example Cases:

Tommy, Penryn, Cornwall,

Tommy owned a conversion apartment in Penryn being sold with a lease of a few days over 59 years left. Tommy on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured satisfactory deal informally and sell the flat.

Penryn case:

In 2009 we were approached by Mr and Mrs. C Carter who, having moved into a ground floor apartment in Penryn in June 2008. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Penryn with a long lease were valued around £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 5 November 2082. Taking into account 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.

Penryn case:

Dr Jordan David was assigned a lease of a newly refurbished flat in Penryn in March 2003. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Penryn with 100 year plus lease were in the region of £237,600. The average amount of ground rent was £45 collected yearly. The lease lapsed on 6 May 2093. Considering the 67 years remaining we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus professional charges.