Chances are that if you own a flat in Truro you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Truro,the lease extension experts 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.
Ethan owned a studio flat in Truro being sold with a lease of a few days over 61 years left. Ethan informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were called by Dr Aaron Baker who, having was assigned a lease of a one bedroom apartment in Truro in August 1997. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable flats in Truro with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed on 8 September 2095. Given that there were 70 years outstanding we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus costs.
In 2011 we were e-mailed by Ms Chelsea Miller who, having purchased a ground floor apartment in Truro in March 2007. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Truro with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 billed every twelve months. The lease expired on 12 January 2075. Taking into account 50 years as a residual term we estimated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus expenses.