The closer a residential lease in Helston gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Helston will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Helston with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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; |
| 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. |
| 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. |
The conveyancers that we work with procure Helston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Winter Aiden, started to get near to the 80-year mark with the lease on his garden apartment in Helston. Having purchased his property twenty years ago, the lease term was of minimal importance. Thankfully, he realised he would soon be paying an inflated amount for Extending the lease. Aiden extended the lease just ahead of time last September. Aiden and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If the lease had gone to less than 80 years, the sum would have gone up by a minimum £1,100.
Ms P Michel completed a one bedroom apartment in Helston in February 2010. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar properties in Helston with 100 year plus lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated on 7 September 2086. Having 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus professional charges.
Last Winter we were approach by Dr O Adams , who completed a garden apartment in Helston in February 2009. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable residencies in Helston with an extended lease were worth £171,800. The average amount of ground rent was £55 billed annually. The lease elapsed in 2075. Having 50 years outstanding we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.