The closer a residential lease in Perranporth nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Perranporth will meet the qualifying criteria; however a conveyancer should be able to confirm if you are eligible 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.
Leasehold premises in Perranporth with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Perranporth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Blake, started to get near to the 80-year mark with the lease on his leasehold flat in Perranporth. Having purchased his property two decades ago, the lease term was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Blake was able to extend his lease just under the wire last September. Blake and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the price would have become more costly by at least £1,150.
Last Spring we were contacted by Ms L Sánchez , who took over the lease of a purpose-built apartment in Perranporth in October 1995. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Perranporth with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced yearly. The lease end date was in 2090. Considering the 64 years remaining we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.
Ms Catherine Baker took over the lease of a studio apartment in Perranporth in February 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Perranporth with an extended lease were worth £270,000. The average ground rent payable was £55 billed per annum. The lease ran out in 2101. Taking into account 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.