Porthleven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Porthleven residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Porthleven you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Porthleven leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 Porthleven,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 in-depth market knowledge and the close ties they enjoy with Porthleven valuers.
In recent months Alex, came seriously near to the 80-year mark with the lease on his leasehold flat in Porthleven. Having purchased his property 18 years ago, the lease term was of minimal importance. by good luck, he recognised he needed to take steps soon on a lease extension. Alex arranged for a lease extension just under the wire last April. Alex and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had dipped to less than 80 years, the premium would have gone up by a minimum £1,100.
Last Autumn we were contacted by Mrs J Richardson , who purchased a studio apartment in Porthleven in March 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Porthleven with a long lease were worth £168,800. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2080. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
Last month we were phoned by Mr Jackson Dupont , who owned a basement flat in Porthleven in September 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Porthleven with an extended lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out on 17 May 2091. Taking into account 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.