Camborne leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Camborne enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Camborne you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
Using our service gives you better control over the value of your Camborne leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Leo was the the leasehold owner of a high value flat in Camborne on the market with a lease of a few days over 59 years outstanding. Leo informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr Gemma Mason completed a studio apartment in Camborne in March 1997. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative residencies in Camborne with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out in 2078. Taking into account 52 years remaining we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.
Mr and Mrs. P Murphy was assigned a lease of a one bedroom apartment in Camborne in August 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar residencies in Camborne with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2089. Considering the 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.