There is no doubt about it a leasehold flat or house in Polperro is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left 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 without delay. Most flat owners in Polperro will qualify for this right; nevertheless a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Polperro,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Polperro valuers.
Leo was the the leasehold owner of a conversion flat in Polperro being marketed with a lease of a few days over 72 years remaining. Leo on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr and Mrs. J Watson completed a basement flat in Polperro in January 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Polperro with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2098. Considering the 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Ms Tia Ricardo bought a basement apartment in Polperro in October 1997. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparable properties in Polperro with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced yearly. The lease end date was on 3 October 2078. Considering the 53 years left we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 plus professional charges.