The market value of a leasehold property in Camelford depends on how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation enables Camelford qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Camelford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a conversion apartment in Camelford being marketed with a lease of a little over 72 years unexpired. Freddie on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr K King moved into a one bedroom apartment in Camelford in February 2011. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Camelford with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease elapsed in 2096. Having 71 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were called by Mrs Grace Garcia who, having owned a recently refurbished apartment in Camelford in October 2003. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Camelford with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease expiry date was in 2085. Given that there were 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 not including costs.