As the the remaining lease term of a Penryn residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Penryn will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Penryn leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her studio flat in Penryn, Jennifer commenced the lease extension process just as the lease was nearing the all-important 80-year threshold. The lease extension was concluded in February 2011. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Ms Anna Moreau who, having moved into a studio apartment in Penryn in March 2011. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Penryn with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease terminated in 2076. Having 51 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Mrs K López took over the lease of a garden flat in Penryn in May 2012. The question was if we could approximate the premium would be for a 90 year lease extension. Identical flats in Penryn with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 16 June 2087. Given that there were 62 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including costs.