Camborne leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Camborne will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Camborne with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Camborne,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Camborne valuers.
Subsequent to lengthy correspondence with the landlord of her first floor apartment in Camborne, Hollie commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was finalised in October 2015. The freeholder’s fees were restricted to below 500 pounds.
In 2011 we were approached by Mr and Mrs. N Lee who, having owned a newly refurbished apartment in Camborne in July 2010. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable properties in Camborne with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed quarterly. The lease ran out on 22 March 2076. Having 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of legals.
In 2010 we were contacted by Mr and Mrs. W Collins who, having took over the lease of a one bedroom apartment in Camborne in June 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Camborne with a long lease were in the region of £208,200. The average ground rent payable was £65 collected annually. The lease end date was on 15 January 2087. Taking into account 61 years outstanding we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.