Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Penryn. Inevitably, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Penryn have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Penryn lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Penryn with over one hundred years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Penryn can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Penryn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the landlord of her basement flat in Penryn, Katherine initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension was concluded in February 2008. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr U López who, having purchased a recently refurbished apartment in Penryn in June 1999. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Penryn with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced monthly. The lease expiry date was in 2079. Having 53 years left we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including fees.
In 2013 we were contacted by Mr and Mrs. N Campbell who, having acquired a newly refurbished flat in Penryn in August 2004. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Penryn with 100 year plus lease were in the region of £220,400. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2090. Having 64 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.