It’s an underpublicised certainty that a Camelford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Camelford property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Camelford will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Camelford,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 in-depth market knowledge and the close ties they enjoy with Camelford valuers.
Off the back of protracted correspondence with the freeholder of her studio flat in Camelford, Rosie initiated the lease extension process as the eighty year deadline was swiftly advancing. The legal work completed in July 2008. The freeholder’s fees were kept to an absolute minimum.
Dr Stanley Moreau purchased a newly refurbished flat in Camelford in July 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable residencies in Camelford with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired on 10 November 2087. Considering the 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
In 2010 we were approached by Mrs V Díaz who, having took over the lease of a basement apartment in Camelford in July 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Camelford with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 15 October 2076. Considering the 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.