Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Perranporth. Clearly, the term of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Perranporth have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give due consideration before putting off your Perranporth lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Perranporth,the lease extension experts 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.
Subsequent to lengthy negotiations with the freeholder of her purpose-built flat in Perranporth, Aimee initiated the lease extension process as the eighty year mark was fast coming. The legal work completed in May 2007. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Dr Omar Cook who, having acquired a one bedroom flat in Perranporth in May 2003. We are asked if we could approximate the price could be to extend the lease by 90 years. Similar properties in Perranporth with an extended lease were in the region of £208,200. The average ground rent payable was £65 collected quarterly. The lease finished on 9 October 2086. Taking into account 61 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.
Mr and Mrs. K Petit purchased a basement apartment in Perranporth in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative premises in Perranporth with a long lease were valued about £260,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed in 2097. Taking into account 72 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.