Port Isaac leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Port Isaac will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Port Isaac with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Port Isaac leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the freeholder of her basement apartment in Port Isaac, Louise initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction completed in May 2010. The freeholder’s charges were kept to an absolute minimum.
Dr C Girard was assigned a lease of a purpose-built flat in Port Isaac in October 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Port Isaac with a long lease were worth £189,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed in 2079. Taking into account 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
Last month we were contacted by Dr F King , who was assigned a lease of a newly refurbished apartment in Port Isaac in May 2005. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Port Isaac with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced quarterly. The lease end date was on 18 June 2099. Considering the 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.