The only way is down when it comes to Penzance lease terms. Penzance properties that have a lease term less than than eighty years will drop in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
The conveyancers that we work with undertake Penzance lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Stanley, came very near to the 80-year threshold with the lease on his purpose- built apartment in Penzance. In buying his property 18 years ago, the length of the lease was of no significance. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Stanley was able to extend his lease just in the nick of time in July. Stanley and the freeholder ultimately settled on a premium of £5,000 . If the lease had dropped lower than eighty years, the premium would have become more exhorbitant by a minimum £1,050.
Mr and Mrs. F Thompson purchased a basement flat in Penzance in March 2009. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative flats in Penzance with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 collected yearly. The lease concluded in 2098. Given that there were 73 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
In 2014 we were phoned by Ms W Morgan who, having moved into a garden flat in Penzance in October 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Penzance with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease expired in 2078. Given that there were 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.