It’s a harsh certainty that a Truro residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Truro property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Truro will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Truro can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Truro lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy correspondence with the landlord of her one bedroom flat in Truro, Courtney commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work completed in June 2009. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. T Norbert who, having bought a one bedroom apartment in Truro in October 2008. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical premises in Truro with a long lease were valued about £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 7 February 2084. Taking into account 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
In 2013 we were approached by Ms Mia Lewis who, having took over the lease of a newly refurbished apartment in Truro in November 1998. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Truro with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 14 August 2095. Having 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of professional charges.