Camborne leases on residential properties are gradually decreasing in 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. It is the case that most Camborne tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Camborne you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Camborne leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her garden flat in Camborne, Laura initiated the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was finalised in May 2008. The landlord’s charges were negotiated to under 650 pounds.
Last Autumn we were contacted by Dr R Bennett , who bought a recently refurbished apartment in Camborne in June 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Camborne with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected annually. The lease ended in 2099. Taking into account 73 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Dr Lucy Rivera completed a basement apartment in Camborne in August 2000. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in Camborne with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease finished on 28 March 2079. Having 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.