Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Truro. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Truro have the legal entitlement to extend the lease for a further ninety years in accordance with statute. Do give due attention before putting off your Truro lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Truro with over one hundred years outstanding 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Truro leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Teddy, started to get near to the 80-year threshold with the lease on his purpose- built flat in Truro. Having bought his property two decades ago, the length of the lease was of no relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Teddy was able to extend his lease just under the wire in June. Teddy and the freeholder via the managing agents in the end settled on an amount of £5,000 . If the lease had descended lower than 80 years, the premium would have increased by a minimum £900.
Last Winter we were called by Mr and Mrs. E Ricardo , who purchased a first floor flat in Truro in August 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Truro with an extended lease were worth £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 23 August 2097. Having 72 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Autumn we were approach by Dr B Murphy , who took over the lease of a recently refurbished apartment in Truro in January 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Truro with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2077. Taking into account 52 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 not including costs.