Port Isaac leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Port Isaac enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Port Isaac you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold properties in Port Isaac with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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 |
Lease extensions in Port Isaac can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Port Isaac lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold owner of a studio flat in Port Isaac being marketed with a lease of a little over sixty years remaining. Max on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. W Rivera moved into a purpose-built flat in Port Isaac in November 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Port Isaac with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2081. Given that there were 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
Last Christmas we were called by Ms Lucy Roberts , who bought a first floor flat in Port Isaac in March 2000. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Similar flats in Port Isaac with a long lease were in the region of £300,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 5 October 2101. Taking into account 75 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.