As the the remaining lease term of a Camborne residential lease lessens so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Camborne will qualify for this right; however a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you enhanced control over the value of your Camborne leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold proprietor of a high value flat in Camborne on the market with a lease of just over fifty eight years left. Dylan on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were e-mailed by Mr and Mrs. O Anderson who, having completed a purpose-built apartment in Camborne in September 1999. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Camborne with 100 year plus lease were worth £261,600. The average amount of ground rent was £60 billed quarterly. The lease elapsed in 2077. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including professional charges.
Ms K Morgan was assigned a lease of a newly refurbished apartment in Camborne in April 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical properties in Camborne with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed annually. The lease terminated on 16 January 2088. Taking into account 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus fees.