Unfortunately that a Perranporth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Perranporth property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Perranporth will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Perranporth with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Perranporth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Elijah owned a studio apartment in Perranporth on the market with a lease of a few days over 72 years remaining. Elijah on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mrs Isobel Khan moved into a purpose-built apartment in Perranporth in October 2001. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar properties in Perranporth with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed per annum. The lease lapsed on 9 March 2105. Given that there were 79 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
Last Summer we were phoned by Ms Hollie Flores , who acquired a garden flat in Perranporth in September 2006. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Perranporth with an extended lease were in the region of £193,400. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2085. Considering the 59 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.