The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Porthleven can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Porthleven lease extension. Shelving that expense today simply escalates the amount you will eventually have to pay for a lease extension.
Leasehold residencies in Porthleven with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her two bedroom flat in Porthleven, Rosie started the lease extension process as the eighty year threshold was fast advancing. The legal work completed in February 2009. The freeholder’s fees were negotiated to less than 500 pounds.
Last Summer we were called by Mr and Mrs. R Collins , who owned a purpose-built apartment in Porthleven in April 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable premises in Porthleven with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected yearly. The lease terminated on 4 April 2097. Taking into account 71 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last month we were phoned by Ms S Lee , who acquired a first floor flat in Porthleven in April 1997. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical homes in Porthleven with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 invoiced monthly. The lease finished in 2077. Having 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of costs.