The market value of Port Isaac leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than 80 years
Leasehold premises in Port Isaac with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Port Isaac leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her two bedroom flat in Port Isaac, Danielle initiated the lease extension process as the 80 year deadline was rapidly coming. The transaction completed in April 2009. The landlord’s fees were restricted to under 650 pounds.
In 2012 we were contacted by Dr Owen Morgan who, having moved into a studio flat in Port Isaac in April 2012. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical properties in Port Isaac with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease came to a finish in 2085. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of legals.
Mr and Mrs. R Garcia moved into a ground floor apartment in Port Isaac in January 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Port Isaac with an extended lease were in the region of £210,000. The average ground rent payable was £50 collected yearly. The lease expired on 21 July 2105. Having 80 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.