The market value of a leasehold property in Helston depends on how many years the lease has left to run. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year mark. Statute entitles Helston qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Helston leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her garden apartment in Helston, Jennifer initiated the lease extension process as the 80 year mark was rapidly advancing. The lease extension was finalised in November 2008. The landlord’s costs were restricted to less than 550 pounds.
In 2009 we were e-mailed by Ms U Brooks who, having moved into a recently refurbished apartment in Helston in July 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Helston with an extended lease were in the region of £198,800. The average ground rent payable was £55 billed quarterly. The lease elapsed on 6 September 2080. Given that there were 55 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.
Last April we were contacted by Ms Gemma Michel , who acquired a studio apartment in Helston in April 2011. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical properties in Helston with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated in 2100. Taking into account 75 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.