Unfortunately that a Porthleven residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Porthleven property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Porthleven will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Porthleven can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Porthleven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful negotiations with the landlord of her two bedroom apartment in Porthleven, Ella started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in March 2005. The landlord’s costs were restricted to below 450 pounds.
Mr and Mrs. S Anderson purchased a first floor apartment in Porthleven in July 2005. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Porthleven with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease expired on 14 January 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus professional charges.
Last July we were phoned by Mr and Mrs. W Watson , who was assigned a lease of a one bedroom flat in Porthleven in May 2006. The dilemma was if we could approximate the price would likely be to prolong the lease by 90 years. Identical homes in Porthleven with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced monthly. The lease ended in 2088. Considering the 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.