Penryn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Penryn tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Penryn you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Penryn leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Penryn,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Penryn valuers.
Subsequent to lengthy discussions with the freeholder of her garden flat in Penryn, Freya commenced the lease extension process as the 80 year threshold was swiftly coming. The legal work was finalised in August 2005. The landlord’s charges were negotiated to less than 500 GBP.
Last Summer we were e-mailed by Dr Jasmine André , who owned a purpose-built flat in Penryn in July 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Penryn with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2097. Considering the 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2012 we were phoned by Mr and Mrs. R Ali who, having was assigned a lease of a purpose-built flat in Penryn in August 2000. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Penryn with an extended lease were worth £254,200. The average amount of ground rent was £60 collected monthly. The lease ended on 26 October 2077. Considering the 51 years left we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.