The only way is down when it comes to Penryn lease terms. Penryn properties that have a residual term less than than eighty years will de-escalate in value even faster, and the cost of extending your lease will increase.
Leasehold properties in Penryn with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you better control over the value of your Penryn leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Samuel, started to get near to the 80-year mark with the lease on his garden flat in Penryn. Having purchased his home two decades ago, the unexpired term was of no importance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Samuel arranged for a lease extension just ahead of time last April. Samuel and the landlord eventually agreed on sum of £5,000 . If the lease had descended to less than eighty years, the figure would have increased by at least £1,000.
Last month we were e-mailed by Dr Oliver Bennett , who bought a studio apartment in Penryn in May 2003. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative premises in Penryn with a long lease were worth £285,000. The average amount of ground rent was £55 collected monthly. The lease termination date was on 22 March 2104. Having 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Dr J King completed a garden apartment in Penryn in March 1995. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable properties in Penryn with a long lease were valued about £193,400. The average ground rent payable was £65 collected yearly. The lease terminated on 10 March 2084. Having 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.