The nearer a residential lease in Port Isaac nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Port Isaac will qualify for this right; that being said a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless 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.
Ben owned a conversion apartment in Port Isaac being marketed with a lease of a little over fifty eight years unexpired. Ben on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last Autumn we were approach by Ms H Taylor , who took over the lease of a purpose-built apartment in Port Isaac in September 1997. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Port Isaac with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was on 18 April 2095. Given that there were 70 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Dr K Wilson completed a purpose-built flat in Port Isaac in April 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Port Isaac with a long lease were valued about £223,400. The average ground rent payable was £60 collected annually. The lease lapsed in 2084. Having 59 years remaining we calculated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including costs.