There is no doubt about it a leasehold flat or house in Penryn is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Penryn will qualify for this right; however a conveyancer will be able to advise 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 under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Penryn,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Penryn valuers.
Sebastian owned a high value apartment in Penryn on the market with a lease of just over fifty eight years left. Sebastian on an informal basis approached his freeholder being a well known local-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 subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Dr I García completed a ground floor flat in Penryn in August 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Penryn with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed in 2102. Taking into account 77 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
In 2013 we were called by Mr and Mrs. E Campbell who, having purchased a purpose-built flat in Penryn in January 2000. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical residencies in Penryn with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2082. Given that there were 57 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.