It’s a harsh certainty that a Penzance residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Penzance property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Penzance will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Penzance,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 in-depth market knowledge and the close ties they enjoy with Penzance valuers.
In 2014 Benjamin, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Penzance. Having bought his property 19 years ago, the lease term was of minimal bearing. Thankfully, he recognised he needed to take action soon on Extending the lease. Benjamin arranged for a lease extension just under the wire in June. Benjamin and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had slid below 80 years, the sum would have become more exhorbitant by a minimum £900.
Last year we were phoned by Mrs F Nelson , who completed a ground floor apartment in Penzance in April 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Penzance with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 billed every twelve months. The lease ran out in 2082. Taking into account 56 years left we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus professional charges.
Mr S Roux took over the lease of a ground floor apartment in Penzance in April 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Penzance with a long lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 19 January 2093. Given that there were 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of expenses.