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 becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Porthleven residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Porthleven you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Porthleven flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her basement flat in Porthleven, Jessica started the lease extension process as the 80 year mark was rapidly advancing. The legal work completed in July 2010. The landlord’s charges were restricted to a tad over 650 pounds.
Dr C Williams took over the lease of a ground floor flat in Porthleven in November 2007. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Comparable flats in Porthleven with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected yearly. The lease terminated on 3 February 2100. Having 74 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2010 we were contacted by Dr D Jackson who, having bought a garden flat in Porthleven in March 1995. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Porthleven with an extended lease were worth £166,400. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2080. Having 54 years left we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.