When it comes to residential leasehold premises in Penryn, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years remaining. Anyone in Penryn with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Penryn with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Penryn,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penryn valuers.
Tyler was the the leasehold proprietor of a 2 bedroom flat in Penryn being sold with a lease of fraction over 72 years remaining. Tyler on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last May we were called by Dr B Martínez , who owned a first floor flat in Penryn in January 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Penryn with an extended lease were valued about £200,800. The average ground rent payable was £65 billed monthly. The lease lapsed on 20 August 2086. Given that there were 60 years outstanding we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.
In 2014 we were approached by Mr Callum Mitchell who, having moved into a one bedroom flat in Penryn in June 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Penryn with a long lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 20 January 2097. Having 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.