The closer a residential lease in Perranporth gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Perranporth will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Perranporth with more than one hundred years outstanding 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with handle Perranporth 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 lawyer we work with provide it.
Half a year ago Teddy, came very close to the eighty-year threshold with the lease on his studio flat in Perranporth. Having purchased his home two decades ago, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Teddy was able to extend his lease at the eleventh hour in June. Teddy and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If he not met the deadline, the figure would have become more costly by at least £925.
In 2011 we were phoned by Mr and Mrs. V Flores who, having completed a garden apartment in Perranporth in April 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable properties in Perranporth with a long lease were worth £173,800. The average ground rent payable was £60 collected monthly. The lease expired in 2080. Having 55 years remaining we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.
Mr F David completed a recently refurbished apartment in Perranporth in August 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Perranporth with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected annually. The lease ran out on 1 October 2091. Having 66 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.