Penryn leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Penryn will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Penryn with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
Regardless of whether you are a tenant or a freeholder in Penryn,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 Penryn valuers.
Trailing protracted discussions with the landlord of her basement flat in Penryn, Bethan commenced the lease extension process as the 80 year deadline was quickly advancing. The transaction was concluded in April 2010. The freeholder’s charges were negotiated to about 500 GBP.
In 2011 we were phoned by Mr Lucas Alexander who, having purchased a garden apartment in Penryn in July 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Penryn with an extended lease were valued around £210,600. The average amount of ground rent was £45 billed yearly. The lease ran out on 15 July 2087. Having 62 years left we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
In 2009 we were e-mailed by Dr Hugo Moore who, having bought a garden flat in Penryn in November 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Penryn with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2098. Given that there were 73 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.