With a domestic leasehold premises in Port Isaac, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years remaining. Residents in Port Isaac with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold 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 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 landlord in Port Isaac,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Port Isaac valuers.
Nathan owned a studio apartment in Port Isaac on the market with a lease of fraction over 61 years left. Nathan on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert advice and secured satisfactory deal informally and readily saleable.
Mr T Cook took over the lease of a one bedroom flat in Port Isaac in April 2006. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Port Isaac with a long lease were valued around £198,800. The average amount of ground rent was £55 collected every twelve months. The lease finished in 2080. Having 55 years remaining we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of fees.
Last Spring we were contacted by Mrs Elizabeth Rose , who acquired a ground floor flat in Port Isaac in August 1997. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative residencies in Port Isaac with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed in 2100. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.