The market value of Perranporth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Perranporth with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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.
Tommy owned a high value apartment in Perranporth on the market with a lease of just over 59 years outstanding. Tommy informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mrs Kelsey Rose was assigned a lease of a studio flat in Perranporth in July 1998. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Identical residencies in Perranporth with an extended lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed in 2096. Having 70 years left we approximated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 not including legals.
In 2009 we were called by Dr Connor Bell who, having owned a one bedroom apartment in Perranporth in September 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar residencies in Perranporth with an extended lease were worth £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ended on 4 August 2076. Taking into account 50 years outstanding we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of expenses.