There is no doubt about it a leasehold flat or house in Camborne is a wasting asset as a result of the shortening lease. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Camborne will qualify for this right; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Camborne,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Camborne valuers.
Jude owned a studio apartment in Camborne being sold with a lease of just over 72 years remaining. Jude on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last Christmas we were called by Dr Joshua Wilson , who purchased a basement flat in Camborne in August 2010. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Camborne with a long lease were valued about £285,000. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish on 26 October 2103. Taking into account 79 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Last Summer we were called by Ms Anna Morgan , who completed a garden flat in Camborne in September 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Camborne with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2083. Considering the 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.