The value of Truro leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Truro lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago David, came critically near to the eighty-year threshold with the lease on his one bedroom flat in Truro. Having purchased his flat two decades ago, the length of the lease was of little bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. David extended the lease just ahead of time last January. David and the landlord subsequently settled on the final figure of £5,500 . If he not met the deadline, the figure would have become more exhorbitant by at least £850.
Ms C Laurent moved into a studio flat in Truro in July 2004. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative flats in Truro with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease concluded on 28 March 2076. Taking into account 51 years remaining we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of fees.
Mr M Cox owned a garden apartment in Truro in July 2005. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable premises in Truro with an extended lease were valued around £210,600. The average ground rent payable was £45 invoiced annually. The lease elapsed on 13 January 2087. Taking into account 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.