There is no doubt about it a leasehold flat or house in Perranporth is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Perranporth will qualify for this right; that being said a conveyancing solicitor should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Perranporth with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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.
In recent months Oliver, came dangerously near to the 80-year mark with the lease on his studio flat in Perranporth. Having purchased his home two decades ago, the lease term was of no relevance. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Oliver extended the lease just ahead of time last June. Oliver and the freeholder subsequently agreed on an amount of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £850.
In 2011 we were phoned by Dr B Ali who, having bought a garden flat in Perranporth in August 2010. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Perranporth with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected quarterly. The lease expired in 2082. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
In 2010 we were contacted by Dr Lewis Wilson who, having took over the lease of a garden apartment in Perranporth in March 2005. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical properties in Perranporth with a long lease were worth £245,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2093. Having 68 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.