It’s a harsh certainty that a Helston residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Helston property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Helston will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Dexter was the the leasehold owner of a conversion apartment in Helston on the market with a lease of a little over 61 years left. Dexter on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and secured satisfactory resolution informally and sell the property.
Dr Sarah Khan moved into a garden apartment in Helston in March 2001. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative premises in Helston with a long lease were valued about £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease ran out in 2095. Taking into account 69 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Last Winter we were contacted by Mrs Daisy Khan , who took over the lease of a purpose-built apartment in Helston in October 2004. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative residencies in Helston with a long lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2084. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.