It’s a harsh certainty that a Porthleven residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Porthleven property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Porthleven will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Using our service will provide you enhanced control over the value of your Porthleven leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold proprietor of a conversion flat in Porthleven on the market with a lease of a little over 72 years remaining. Finn on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr Y Clarke was assigned a lease of a ground floor flat in Porthleven in August 2007. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Porthleven with a long lease were valued about £193,400. The mid-range ground rent payable was £65 billed per annum. The lease elapsed in 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.
Last year we were contacted by Mrs M Wood , who was assigned a lease of a purpose-built apartment in Porthleven in January 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable homes in Porthleven with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed on 28 April 2096. Considering the 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.