Camborne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Camborne tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Camborne you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Camborne flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same 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 |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Camborne,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 experience and the close ties they enjoy with Camborne valuers.
Last Winter Teddy, started to get near to the eighty-year mark with the lease on his first floor flat in Camborne. Having purchased his home two decades ago, the length of the lease was of no interest. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Teddy was able to extend his lease just in the nick of time in June. Teddy and the landlord subsequently agreed on an amount of £5,000 . If he not met the deadline, the price would have increased by a minimum £1,150.
In 2010 we were contacted by Dr Kian Ali who, having completed a ground floor flat in Camborne in October 1997. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Camborne with an extended lease were valued around £245,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease finished on 28 November 2093. Considering the 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last year we were called by Dr D Nguyen , who completed a basement flat in Camborne in May 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Camborne with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 19 November 2104. Having 79 years left we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.