For those whose Port Isaac home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Port Isaac with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you better control over the value of your Port Isaac leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a high value apartment in Port Isaac on the market with a lease of just over 72 years outstanding. Henry on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last year we were approach by Dr E Mercier , who acquired a recently refurbished apartment in Port Isaac in May 2010. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Port Isaac with a long lease were valued about £243,000. The average ground rent payable was £65 collected annually. The lease expired in 2087. Taking into account 63 years left we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.
Last Summer we were called by Mr M Thompson , who purchased a first floor flat in Port Isaac in October 2005. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable homes in Port Isaac with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2076. Having 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.