Perranporth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Perranporth tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Perranporth you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property 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 property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Perranporth leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a 2 bedroom apartment in Perranporth being marketed with a lease of just over fifty eight years outstanding. Noah on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were called by Ms Ella Johnson who, having owned a studio apartment in Perranporth in May 2009. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative premises in Perranporth with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected yearly. The lease expired in 2082. Considering the 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus professional charges.
Mr Jonathan Dupont was assigned a lease of a garden flat in Perranporth in May 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Perranporth with an extended lease were valued around £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2093. Having 67 years unexpired we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.