The value of Camelford 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 increase substantially once the unexpired lease term is below than eighty years
Leasehold premises in Camelford with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Camelford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Camelford valuers.
Finley owned a studio apartment in Camelford being sold with a lease of just over 59 years left. Finley on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were contacted by Mrs Emily Miller who, having took over the lease of a purpose-built apartment in Camelford in February 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Camelford with 100 year plus lease were worth £166,800. The average ground rent payable was £50 billed per annum. The lease expired on 8 May 2074. Considering the 50 years left we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. J Williams who, having completed a basement apartment in Camelford in May 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Camelford with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 billed annually. The lease expiry date was in 2094. Taking into account 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.