For those whose Perranporth flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold properties in Perranporth with in excess of 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Perranporth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Perranporth valuers.
After protracted negotiations with the landlord of her leasehold apartment in Perranporth, Francesca started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work completed in January 2012. The freeholder’s costs were kept to an absolute minimum.
Last July we were approach by Dr Ibrahim Ramírez , who acquired a studio flat in Perranporth in February 1995. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparative premises in Perranporth with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected quarterly. The lease terminated on 27 January 2086. Given that there were 62 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.
Mrs U Evans acquired a ground floor apartment in Perranporth in March 2002. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative flats in Perranporth with a long lease were in the region of £265,000. The average amount of ground rent was £50 collected yearly. The lease terminated in 2097. Taking into account 73 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.