There is no doubt about it a leasehold flat or house in Penzance is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Penzance will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Penzance with over 100 years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Penzance lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Oscar, came critically close to the eighty-year mark with the lease on his ground floor apartment in Penzance. Having bought his flat 18 years previously, the length of the lease was of no relevance. by good luck, he became aware that he needed to take action soon on a lease extension. Oscar was able to extend his lease at the eleventh hour in January. Oscar and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £900.
Ms E Nguyen bought a purpose-built apartment in Penzance in June 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Penzance with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed monthly. The lease came to a finish on 1 January 2094. Considering the 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2009 we were phoned by Dr Katie Edwards who, having acquired a first floor flat in Penzance in October 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Penzance with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed per annum. The lease finished in 2105. Given that there were 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.