Truro leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Truro residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Truro you must see if your lease has between seventy and 90 years remaining. There are good reasons why a Truro flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Truro,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Truro valuers.
Last October Harry, came perilously close to the 80-year mark with the lease on his ground floor apartment in Truro. Having bought his property 18 years previously, the unexpired term was of minimal bearing. Luckily, it dawned on him that he needed to take action soon on a lease extension. Harry was able to extend his lease at the eleventh hour last May. Harry and the freeholder eventually agreed on sum of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,050.
In 2012 we were contacted by Mr Logan Girard who, having owned a basement flat in Truro in June 2006. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Truro with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out on 23 October 2076. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus expenses.
In 2010 we were phoned by Mr and Mrs. P Peterson who, having took over the lease of a one bedroom apartment in Truro in July 1999. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Truro with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 23 May 2087. Taking into account 61 years outstanding we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.