When it comes to residential leasehold property in Helston, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Anyone in Helston with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years outstanding, under the current statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Helston with in excess of one hundred years left 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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. |
The conveyancers that we work with handle 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.
Benjamin owned a 2 bedroom flat in Helston being sold with a lease of a few days over fifty eight years outstanding. Benjamin informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2014 we were approached by Mr and Mrs. L André who, having acquired a purpose-built flat in Helston in March 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Helston with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish on 6 May 2094. Given that there were 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Last Summer we were phoned by Mr and Mrs. G Cooper , who owned a one bedroom apartment in Helston in October 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Helston with a long lease were worth £213,600. The mid-range amount of ground rent was £60 invoiced annually. The lease expired on 18 October 2083. Considering the 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.