Porthleven leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Porthleven tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Porthleven you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Porthleven leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a 2 bedroom apartment in Porthleven on the market with a lease of a few days over sixty years unexpired. Archie informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie procured expert advice and secured satisfactory resolution informally and sell the flat.
Last Winter we were phoned by Mr and Mrs. G Bernard , who completed a one bedroom flat in Porthleven in August 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable premises in Porthleven with a long lease were in the region of £176,200. The average amount of ground rent was £65 billed monthly. The lease lapsed in 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus legals.
Last Christmas we were approach by Dr A King , who purchased a one bedroom apartment in Porthleven in April 2000. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative premises in Porthleven with 100 year plus lease were in the region of £237,600. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 23 April 2093. Having 67 years outstanding we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including fees.