The value of Truro leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Subsequent to protracted negotiations with the landlord of her leasehold flat in Truro, Nicole started the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in May 2013. The freeholder’s costs were kept to an absolute minimum.
Ms O Lefebvre bought a recently refurbished apartment in Truro in July 2012. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Truro with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out on 19 October 2080. Considering the 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus legals.
Last Christmas we were phoned by Dr T Hall , who owned a recently refurbished flat in Truro in April 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar residencies in Truro with a long lease were worth £227,800. The average ground rent payable was £45 collected yearly. The lease elapsed in 2091. Taking into account 65 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.