Chances are that if you own a flat in Truro you actually own a long leasehold interest over your property
Leasehold properties in Truro with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
16 months ago Finn, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Truro. Having purchased his flat 19 years previously, the lease term was of minimal bearing. As luck would have it, he noticed he needed to take action soon on a lease extension. Finn extended the lease just in the nick of time last August. Finn and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he not met the deadline, the sum would have become more costly by at least £1,125.
In 2009 we were e-mailed by Mrs I Cooper who, having moved into a garden flat in Truro in November 2005. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar properties in Truro with an extended lease were worth £256,600. The average amount of ground rent was £60 collected yearly. The lease elapsed in 2078. Having 52 years left we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.
In 2014 we were approached by Ms Kelsey André who, having completed a purpose-built flat in Truro in August 2009. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Truro with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease lapsed in 2089. Considering the 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.