Penryn leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Leasehold owners in Penryn will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Penryn with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 experience and the close ties they enjoy with Penryn valuers.
Mason was the the leasehold owner of a high value flat in Penryn on the market with a lease of a little over fifty eight years unexpired. Mason informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr Benjamin Martínez moved into a basement flat in Penryn in March 2003. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative properties in Penryn with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out on 23 October 2095. Considering the 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2010 we were called by Mr I Anderson who, having took over the lease of a purpose-built flat in Penryn in September 2008. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical flats in Penryn with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 3 May 2106. Taking into account 80 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.