As the the remaining lease term of a Penryn residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Penryn will qualify for this right; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with undertake 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.
Half a year ago Seth, came dangerously near to the eighty-year threshold with the lease on his leasehold flat in Penryn. Having bought his property two decades ago, the length of the lease was of minimal relevance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Seth extended the lease at the eleventh hour in July. Seth and the landlord subsequently agreed on sum of £6,000 . If he had missed the deadline, the price would have increased by at least £850.
In 2012 we were contacted by Mrs Emma Bennett who, having purchased a newly refurbished apartment in Penryn in July 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Penryn with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease elapsed in 2079. Taking into account 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus costs.
Mr and Mrs. M Murphy took over the lease of a one bedroom apartment in Penryn in August 2011. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Penryn with an extended lease were valued around £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2090. Given that there were 65 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.