Truro leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Truro will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Truro with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Truro can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Truro lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eli was the the leasehold owner of a conversion flat in Truro on the market with a lease of fraction over 61 years unexpired. Eli on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr and Mrs. E Murphy who, having took over the lease of a garden flat in Truro in October 2009. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Truro with a long lease were in the region of £290,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded in 2105. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.
Dr Tyler Clarke owned a first floor flat in Truro in August 1995. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative residencies in Truro with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2085. Taking into account 60 years outstanding we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.