Truro leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Truro will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 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 |
|---|---|
| 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 |
| 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 undertake Truro 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.
Following unsuccessful discussions with the landlord of her studio flat in Truro, Catherine initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was finalised in November 2006. The freeholder’s fees were restricted to below 700 GBP.
Mr and Mrs. W Cook purchased a one bedroom flat in Truro in March 1998. The question was if we could approximate the price would be to extend the lease by ninety years. Similar premises in Truro with 100 year plus lease were worth £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2092. Considering the 67 years left we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.
Last Christmas we were e-mailed by Mrs Isobel Bertrand , who was assigned a lease of a one bedroom apartment in Truro in June 2008. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical residencies in Truro with a long lease were worth £280,000. The average amount of ground rent was £55 invoiced per annum. The lease finished on 11 January 2103. Considering the 78 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.