Porthleven leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Porthleven will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Porthleven can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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.
Off the back of unsuccessful discussions with the freeholder of her ground floor apartment in Porthleven, Louise initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in October 2015. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were contacted by Mr N Young , who purchased a purpose-built apartment in Porthleven in May 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Porthleven with an extended lease were in the region of £186,000. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed in 2083. Taking into account 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 plus costs.
Last Summer we were approach by Dr Olivia Wood , who completed a studio apartment in Porthleven in August 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Porthleven with a long lease were in the region of £250,000. The average amount of ground rent was £50 collected quarterly. The lease expiry date was in 2094. Given that there were 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.