Polperro leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Polperro will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and formalities to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with undertake Polperro 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.
Twenty four months ago Noah, came critically near to the 80-year threshold with the lease on his two bedroom apartment in Polperro. Having purchased his flat two decades ago, the unexpired term was of no interest. Thankfully, he realised he needed to take steps soon on a lease extension. Noah extended the lease just under the wire in March. Noah and the freeholder via the management company eventually settled on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £950.
In 2011 we were phoned by Mr Kian Miller who, having purchased a recently refurbished flat in Polperro in April 1998. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Polperro with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed annually. The lease ran out in 2104. Considering the 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
In 2012 we were approached by Mr and Mrs. K Edwards who, having purchased a recently refurbished flat in Polperro in August 2004. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar homes in Polperro with an extended lease were worth £200,800. The average ground rent payable was £65 collected annually. The lease ended on 28 April 2084. Having 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.