Penzance leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Penzance will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Penzance with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Penzance,the lease extension solicitors 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 Penzance valuers.
Subsequent to protracted discussions with the landlord of her ground floor flat in Penzance, Freya commenced the lease extension process as the 80 year mark was swiftly advancing. The transaction was finalised in January 2013. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. N Turner who, having owned a studio apartment in Penzance in September 1997. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Penzance with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced annually. The lease expired in 2103. Taking into account 77 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
Mrs Abbie Rose acquired a one bedroom flat in Penzance in April 2000. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical premises in Penzance with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease expired on 13 February 2083. Considering the 57 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.