With a long leasehold premises in Camborne, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Camborne with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Camborne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Callum was the the leasehold proprietor of a 2 bedroom apartment in Camborne being marketed with a lease of just over 61 years remaining. Callum informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were called by Dr R Turner who, having bought a garden flat in Camborne in September 2006. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar homes in Camborne with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished in 2095. Taking into account 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including fees.
Last March we were approach by Mr and Mrs. P Bennett , who acquired a garden apartment in Camborne in January 2001. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in Camborne with an extended lease were worth £246,800. The average ground rent payable was £60 collected per annum. The lease expired in 2075. Given that there were 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of fees.