As the the remaining lease term of a Perranporth residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Perranporth will qualify for this right; that being said a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Perranporth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her garden apartment in Perranporth, Ellie started the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work completed in September 2014. The landlord’s charges were kept to an absolute minimum.
Last year we were called by Mr J Taylor , who took over the lease of a garden apartment in Perranporth in October 2005. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Perranporth with a long lease were valued around £285,000. The average ground rent payable was £55 collected yearly. The lease finished on 13 March 2106. Having 80 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Dr H Carter moved into a garden apartment in Perranporth in July 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Perranporth with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease termination date was in 2086. Given that there were 60 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.