The market value of a leasehold property in Perranporth is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the 80 year cut off point. Current legislation enables Perranporth qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Perranporth with in excess of one hundred years remaining 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Perranporth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Perranporth valuers.
Two years ago Henry, came perilously close to the eighty-year threshold with the lease on his garden apartment in Perranporth. Having purchased his property 19 years previously, the lease term was of little bearing. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Henry was able to extend his lease just in the nick of time last June. Henry and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If the lease had gone to less than eighty years, the premium would have escalated by a minimum £950.
Last Christmas we were called by Mr and Mrs. I Richardson , who owned a basement apartment in Perranporth in May 2007. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable residencies in Perranporth with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected quarterly. The lease end date was on 1 June 2083. Given that there were 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including legals.
Last Winter we were called by Dr L Gray , who was assigned a lease of a ground floor apartment in Perranporth in August 2011. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Perranporth with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated in 2094. Taking into account 69 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.