There is no doubt about it a leasehold property in Helston is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Helston will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Helston with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Helston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Helston valuers.
In 2014 Ryan, started to get close to the eighty-year threshold with the lease on his basement apartment in Helston. In buying his flat two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Ryan extended the lease just in the nick of time in January. Ryan and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he had missed the deadline, the figure would have increased by at least £950.
In 2011 we were approached by Ms K Moreau who, having bought a ground floor flat in Helston in April 2001. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Helston with an extended lease were worth £206,200. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 13 July 2080. Considering the 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.
Last Autumn we were called by Dr Jasper Taylor , who moved into a ground floor apartment in Helston in July 1997. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable homes in Helston with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2100. Given that there were 76 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.