Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Polperro. Clearly, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Polperro have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before putting off your Polperro lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in Polperro with more than 100 years unexpired on the lease are sometimes regarded as a ‘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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Polperro,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Polperro valuers.
In 2014 Jude, came seriously close to the 80-year threshold with the lease on his purpose- built apartment in Polperro. In buying his property two decades ago, the lease term was of minimal relevance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Jude was able to extend his lease at the eleventh hour in March. Jude and the freeholder in the end agreed on sum of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
Last Summer we were called by Mr Mason Jones , who bought a studio flat in Polperro in May 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Polperro with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out in 2082. Taking into account 57 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Mr and Mrs. Y Thomas acquired a recently refurbished apartment in Polperro in June 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Polperro with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2092. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.