Truro leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Truro enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Truro you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Truro flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Truro 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Following lengthy discussions with the freeholder of her two bedroom flat in Truro, Georgia initiated the lease extension process as the 80 year deadline was quickly approaching. The legal work was concluded in August 2007. The landlord’s costs were restricted to slightly above 550 pounds.
In 2012 we were phoned by Ms I Sánchez who, having completed a first floor apartment in Truro in May 1999. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Truro with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 collected annually. The lease concluded on 18 June 2079. Given that there were 53 years left we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.
Mr L Hill owned a studio flat in Truro in September 1997. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Truro with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded in 2090. Given that there were 64 years left we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 plus professional charges.