There is no doubt about it a leasehold flat or house in Helston is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Helston will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Helston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Helston valuers.
Last October Liam, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Helston. Having purchased his flat twenty years ago, the length of the lease was of minimal significance. Luckily, he recognised he needed to take steps soon on a lease extension. Liam was able to extend his lease just under the wire last March. Liam and the freeholder eventually agreed on a premium of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £900.
Last Autumn we were e-mailed by Dr Jessica Morel , who purchased a one bedroom apartment in Helston in May 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Helston with a long lease were in the region of £230,800. The mid-range amount of ground rent was £60 billed yearly. The lease concluded in 2086. Taking into account 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus legals.
Mr and Mrs. I Robinson acquired a purpose-built apartment in Helston in January 2005. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Comparative homes in Helston with an extended lease were valued around £210,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 15 January 2106. Given that there were 80 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.