When it comes to domestic leasehold property in Helston, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Helston with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
The lawyers 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 conveyancing solicitor we work with provide it.
David was the the leasehold owner of a high value flat in Helston on the market with a lease of just over 59 years left. David on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were David to exercise his statutory right. David procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Last Spring we were approach by Ms U Scott , who bought a ground floor flat in Helston in July 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable homes in Helston with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected monthly. The lease expired in 2093. Given that there were 67 years outstanding we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including fees.
Ms Sian López took over the lease of a one bedroom apartment in Helston in April 2009. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Helston with an extended lease were worth £206,200. The average ground rent payable was £60 collected every twelve months. The lease finished in 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of legals.