The value of Penzance leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you increased control over the value of your Penzance leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her leasehold flat in Penzance, Isabelle started the lease extension process as the 80 year mark was quickly coming. The lease extension was concluded in November 2015. The landlord’s costs were negotiated to less than 700 GBP.
In 2013 we were e-mailed by Mrs S Taylor who, having completed a studio flat in Penzance in November 2004. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Penzance with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 26 May 2095. Considering the 69 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr Jayden Phillips acquired a garden flat in Penzance in August 2007. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar premises in Penzance with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish on 6 June 2106. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.