Truro leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Truro residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Truro you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Truro leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Truro with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with procure Truro lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of lengthy discussions with the freeholder of her ground floor flat in Truro, Rachael commenced the lease extension process as the eighty year threshold was quickly coming. The legal work was concluded in March 2007. The landlord’s fees were kept to an absolute minimum.
Mr Tyler Thomas purchased a garden apartment in Truro in June 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Truro with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2098. Given that there were 74 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Winter we were e-mailed by Mrs L James , who was assigned a lease of a ground floor apartment in Truro in February 1997. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative homes in Truro with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease end date was in 2078. Taking into account 54 years as a residual term we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.