Porthleven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Porthleven enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Porthleven you should see if your lease has between 70 and ninety years left. There are compelling reasons why a Porthleven leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Porthleven with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Porthleven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Samuel was the the leasehold owner of a studio flat in Porthleven being marketed with a lease of just over fifty eight years remaining. Samuel on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mr I Robinson took over the lease of a studio flat in Porthleven in February 2006. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical homes in Porthleven with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated on 2 September 2105. Having 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2012 we were contacted by Mr and Mrs. N Collins who, having bought a basement flat in Porthleven in May 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical premises in Porthleven with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated on 19 June 2085. Given that there were 59 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.