Chances are that if you own a flat in Truro you actually own a long leasehold interest over your property
Leasehold residencies in Truro with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
Lender | Requirement |
---|---|
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Yorkshire 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. |
Lease extensions in Truro can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Truro lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a conversion apartment in Truro on the market with a lease of just over sixty years outstanding. Harry on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and secured an acceptable resolution informally and sell the property.
Last Winter we were e-mailed by Mr and Mrs. N Williams , who acquired a studio apartment in Truro in May 1997. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable flats in Truro with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2080. Given that there were 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus expenses.
In 2012 we were approached by Mr Max Mercier who, having owned a studio flat in Truro in May 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Truro with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 billed annually. The lease lapsed on 2 May 2091. Having 67 years unexpired we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.