Porthleven leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Porthleven will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Porthleven with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Porthleven,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Porthleven valuers.
Subsequent to unsuccessful correspondence with the landlord of her garden flat in Porthleven, Abbie initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction was concluded in September 2015. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr Ollie Lambert who, having completed a basement apartment in Porthleven in November 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Porthleven with a long lease were worth £220,400. The average amount of ground rent was £45 collected quarterly. The lease elapsed on 7 September 2090. Considering the 64 years left we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus legals.
Dr Emily Anderson moved into a newly refurbished flat in Porthleven in September 2011. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Identical properties in Porthleven with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 6 March 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.