Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Port Isaac. Inevitably, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Port Isaac have the right to extend the lease for a further ninety years under legislation. Please give due deliberation before delaying your Port Isaac lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Port Isaac with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
The lawyers that we work with handle Port Isaac 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 conveyancer we work with provide it.
In 2014 Edward, came precariously close to the 80-year mark with the lease on his ground floor flat in Port Isaac. Having bought his property twenty years ago, the length of the lease was of little interest. by good luck, he noticed he needed to take action soon on a lease extension. Edward extended the lease just under the wire in April. Edward and the freeholder subsequently agreed on an amount of £5,000 . If he had missed the deadline, the price would have increased by a minimum £1,000.
Mr Riley Kelly acquired a recently refurbished flat in Port Isaac in February 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Port Isaac with an extended lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed annually. The lease ran out in 2076. Given that there were 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.
Last Christmas we were approach by Ms Harriet Norbert , who purchased a one bedroom flat in Port Isaac in May 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Port Isaac with a long lease were worth £280,000. The average amount of ground rent was £45 collected every twelve months. The lease expiry date was in 2096. Having 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.