With a domestic leasehold property in Truro, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Truro with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has less than 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Truro with over 100 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Truro,the lease extension solicitors 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 Truro valuers.
Trailing protracted correspondence with the freeholder of her two bedroom flat in Truro, Rachel commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction completed in August 2009. The landlord’s charges were kept to an absolute minimum.
In 2011 we were approached by Mrs H Reed who, having acquired a purpose-built flat in Truro in March 1995. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Truro with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 24 April 2088. Taking into account 62 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.
Mr and Mrs. L Cook moved into a one bedroom flat in Truro in October 1997. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical premises in Truro with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected annually. The lease concluded in 2099. Given that there were 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.