With a residential leasehold premises in Porthleven, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than eighty years left. Residents in Porthleven with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Porthleven leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jake, came perilously near to the eighty-year mark with the lease on his one bedroom flat in Porthleven. Having bought his flat two decades ago, the length of the lease was of no concern. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Jake extended the lease just under the wire in March. Jake and the landlord subsequently agreed on a premium of £5,000 . If he not met the deadline, the sum would have become more costly by a minimum £1,000.
Last Spring we were called by Dr Danielle Anderson , who moved into a ground floor flat in Porthleven in July 2008. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical residencies in Porthleven with an extended lease were worth £245,000. The average ground rent payable was £50 collected monthly. The lease finished in 2094. Given that there were 68 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Winter we were phoned by Mr and Mrs. O Collins , who was assigned a lease of a purpose-built flat in Porthleven in September 1998. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Porthleven with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2105. Taking into account 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.