Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Porthleven. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Porthleven have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. You should give due deliberation before delaying your Porthleven lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle 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.
Dexter was the the leasehold proprietor of a 2 bedroom flat in Porthleven being sold with a lease of just over 61 years remaining. Dexter on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Benjamin Díaz purchased a one bedroom apartment in Porthleven in May 2007. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Porthleven with an extended lease were in the region of £237,600. The average ground rent payable was £45 invoiced monthly. The lease terminated in 2093. Given that there were 67 years outstanding we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.
Mr and Mrs. R Bailey moved into a one bedroom flat in Porthleven in November 2009. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Porthleven with a long lease were in the region of £280,000. The average ground rent payable was £55 collected every twelve months. The lease finished on 17 May 2104. Having 78 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.