The value of Porthleven leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Retaining our service will provide you better control over the value of your Porthleven leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the landlord of her garden apartment in Porthleven, Shannon initiated the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction was concluded in September 2014. The landlord’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr T Brooks , who completed a studio apartment in Porthleven in June 1999. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Porthleven with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease terminated in 2095. Taking into account 70 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Last Summer we were phoned by Ms O Young , who acquired a first floor flat in Porthleven in November 2011. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Porthleven with an extended lease were valued about £246,800. The average ground rent payable was £60 collected every twelve months. The lease termination date was in 2075. Taking into account 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.