The market value of Camborne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Teddy, started to get near to the eighty-year threshold with the lease on his leasehold flat in Camborne. Having purchased his property twenty years previously, the length of the lease was of no significance. Luckily, he noticed he needed to take action soon on Extending the lease. Teddy extended the lease just under the wire in September. Teddy and the freeholder subsequently settled on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by a minimum £1,150.
Last Autumn we were phoned by Mr B Rose , who completed a basement apartment in Camborne in February 1995. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Camborne with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 billed yearly. The lease end date was on 15 April 2083. Given that there were 57 years unexpired we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.
In 2011 we were phoned by Dr O James who, having acquired a purpose-built flat in Camborne in May 1996. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative residencies in Camborne with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2094. Taking into account 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.