When it comes to long leasehold premises in Penzance, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Penzance with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Penzance with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Penzance can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Penzance lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her two bedroom apartment in Penzance, Rebecca commenced the lease extension process as the 80 year threshold was quickly approaching. The transaction completed in January 2005. The landlord’s charges were kept to an absolute minimum.
Ms P Lefebvre owned a basement apartment in Penzance in May 1999. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Penzance with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed annually. The lease finished on 17 February 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Winter we were approach by Ms Naomi King , who purchased a one bedroom flat in Penzance in March 2002. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar properties in Penzance with an extended lease were worth £256,600. The average ground rent payable was £60 billed quarterly. The lease termination date was on 27 June 2077. Taking into account 52 years unexpired we approximated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 exclusive of professional charges.